SHAH ALAM: In a move to further enlarge its presence within the development industrial properties, DRB-Hicom Bhd had disposed a large portion of its non-industrial property assets and its entire hospitality portfolio totalling an estimated RM1.9 billion.
In an announcement to Bursa Malaysia today, the group says it will dispose several subsidiaries owning some 2,200 acres of land, as well as its entire equity in Horsedale Development Bhd and Rebak Island Marina Bhd to Prisma Dimensi Sdn Bhd (PDSB).
The deal is estimated to be worth RM1.9 billion, and will be satisfied via a cache of landbank in Johor totalling 1,243.45 acres belonging to PDSB and Kelana Ventures Sdn Bhd (KVSB), and the balance through a cash payment of RM289 million.
Group managing director Datuk Seri Syed Faisal Albar says the transaction will signify a shift in focus for its properties sector, aiming to leverage the Group’s vast experience in industrial property development.
“There is a 30 year experience as an industrial property developer that DRB-Hicom has in its history, and this transaction affords us the opportunity to leverage on this capabilities,” he said.
“With the incoming land bank in Johor, the Group is in an advantageous position to tap into the high demand of industrial parks especially from Singapore, and DRB-Hicom intends to develop this into a high-tech and modern industrial park once the property market recovers from its current slumber.”
Among the significant industrial areas developed by DRB-Hicom include HICOM Industrial Estate in Shah Alam, Glenmarie Industrial Park also in Shah Alam and HICOM Pegoh Industrial Park in Alor Gajah, Melaka.
The deal will also expands the group’s industrial landbank to some 1,800 acres, as DRB Hicom’s existing industrial land bank is located in Kedah, Perak and Melaka, totalling approximately 600 acres.
Significantly, the exercise will also see DRB-Hicom exiting the hospitality industry, with the sale of Rebak Island Marina Bhd, the owners of Vivanta Rebak Island Resort by Taj located on Rebak Island, Langkawi and Holiday Inn Glenmarie Kluala Lumpur and Glenmarie Golf & Country Club, both situated next to each other in Glenmarie, Shah Alam.
“Having a core focus for each of our main sectors is important. While there is potential of course in the hospitality industry, we feel that DRB-Hicom’s strengths lie in different areas,” said Syed Faisal.
“This exit will allow us to have a leaner and more focused properties portfolio, making it easier to harness these strengths and push towards excellence in industrial property development.”
DRB-Hicom says it expects the transaction to be completed within the first quarter of 2019, subject to obtaining all regulatory approvals.