I-Bhd acquires land near KLCC for RM132m

by **Cals** Thu 24 Oct 2013, 13:18

Business & Markets 2013

Written by theedgemalaysia.com

Thursday, 24 October 2013 13:05

KUALA LUMPUR (October 24): I-Bhd, the master developer of i-City, announced it has bought a 1.05-acre tract in the vicinity of the Kuala Lumpur City Centre (KLCC) to develop a luxurious high-rise project.
Located at Jalan Changkat Kia Peng, the land is acquired by I-Marcom Sdn Bhd (a subsidiary of I-Berhad) from Sumuracres Sdn Bhd for RM132 million. This is its maiden foray outside Shah Alam.
i-Berhad proposes to develop the Grand i-Residence on this plot, with RM820 million gross development value (GDV) project, the company’s statement said.
It will make up 442 fully-furnished luxurious residential units with an average selling price of RM 2,300 psf.
The project is expected to commence in mid-2014 and slated for completion by mid-2019.
Sumuracres is a wholly owned subsidiary of Sumurwang Properties Sdn Bhd, which in turn is wholly owned by Sumurwang Sdn Bhd in which Tan Sri Lim Kim Hong, the executive chairman of I-Berhad, has a substantial shareholding.
The RM 132 million purchase price is to be settled by way of the issuance of Redeemable Convertible Unsecured Loan Stocks (RCULS).
The RCULS will have 5-year tenure with an average coupon rate of 3.4 % per annum.
In addition, the RCULS can be converted to I-Berhad ordinary shares at RM 3.20 per share, representing a 15% premium to the past 5 days volume weighted average market price.
The RCULS scheme enables I-Berhad to settle the purchase price without incurring significant cash outflow on the onset.