DRB-Hicom plans high-end boutique luxury mixed developments in Langkawi

by **hlk** Wed 21 Dec 2011, 21:59

Larger Smaller Reset KUALA LUMPUR (Dec 21): DRB-HICOM BHD []'s unit has
entered into a swap agreement to convert the status of its land in
Langkawi from Malay reserve (MR) to non-Malay reserve with a view to
undertake high-end boutique luxury mixed developments there.

It
said on Wednesday that its unit Rebak Island Marina Bhd (Rebak) had
entered into the agreement with Northern Gateway Free Zone Sdn Bhd
(NGFZ) to change the designation of 333 acres of land owned by Rebak
from MR to non-MR status of 350 acres freehold land in Bandar Kota
Perdana, Kubang Pasu, Kedah for RM76 million cash.

DRB-Hicom said Rebak owned 379.78 acres leasehold land on Pulau Rebak Besar, Langkawi as well as 4.70 acres of freehold land.

The conglomerate said the swapping of the land status was an allowed
exercise to convert the status of MR land to non-MR land subject to the
relevant conditions imposed by the Kedah state government.

On
the rationale for the land status conversion, DRB-Hicom said that there
was a recent surge in the exodus of high net worth individuals to the
Asean region which had contributed to the success of boutique luxury
concept projects undertaken in the region, including Phuket, Koh Samui
and Bali.

It said Malaysia was the only country in the region
that does not have the boutique luxury concept developments, adding that
concept projects in Langkawi would amplify the 5-year Langkawi Tourism
Blueprint announced by the government to attract high net worth
individuals to reside in Langkawi.

'Acknowledging the said
potential of high-end boutique luxury mixed developments, DRB-Hicom via
Rebak plans to develop villas and waterfront bungalow lots, commercial
retail outlets and other required amenities on the undeveloped portion
of Rebak Land,' it said.

DRB-Hicom said its future earnings were
expected to improve taking into consideration the enhanced future
development potential of Rebak Land, after the conversion, which would
benefit the group in the long-term.