KUALA LUMPUR: Sime Darby Elmina Development Sdn Bhd (SDED), a unit of Sime Darby Property Bhd, has signed an agreement to sell a piece of land in Elmina West to Eastern and Oriental (E&O) Bhd subsidiary Eastern and Oriental Express Sdn Bhd for RM239.8 million, sealing a partnership that will enhance the value of a distinctive themed township in the Klang Valley.
The agreement involves the sale of about 54.6326 hectares of freehold land in Elmina West, part of the larger 2023.428 hectares of City Of Elmina which will be developed into a wellness and liveable city, SDED said in a statement.
It is expected that the actual gross development value (GDV) would potentially be higher than the estimated baseline GDV of RM1.5 billion.
As part of the agreement, E&O has agreed to share the amount of the actual GDV that exceeds the baseline GDV with an agreed sharing ratio of 80:20, whereby E&O will pay SDED the amount equivalent to 20 per cent of the enhanced GDV.
Sime Darby Bhd Group chief operating officer and Sime Darby Property managing director Datuk Seri Wahab Maskan said the mutually-beneficial decision shows that both parties are committed to collaborating on good prospects to develop distinctive products based on its unique strengths.
"This will undoubtedly enable Sime Darby Property to enhance the value of our landbank, while we build sustainable communities," Wahab added.-- Bernama