Oilcorp Berhad And Amanah Raya Berhad To Jointly Develop Property In Kl Sentral
KUALA LUMPUR: Magic Coast Sdn Bhd, a subsidiary of Oilcorp Bhd (Stock Code OILCORP 3697) today signed an agreement with Amanah Raya Development Sdn Bhd, a subsidiary of Amanah Raya Berhad, to jointly develop a 35 storey office tower and a 33 storey hotel block with the gross development value of RM330 million.
D’Tiara AmanahRaya Hotel Suites & Corporate Offices, strategically positioned within the KL Sentral locality, will be developed as a self-contained project within KL Sentral’s excellent infrastructure, is positioned as the best place to Work, Relax & Recharge in the Klang Valley.
The signing ceremony today saw the corporate office building block being completely underwritten and jointly developed by AmanahRaya Development Sdn Bhd to the tune of RM149.31million. A total of RM30 million or 20% of the undertaking price would be paid to Magic Coast as part of the consideration of the underwriting agreement, in return Oilcorp will provide a corporate guarantee to Amanah Raya Development Sdn Bhd of up to the same limit.
Also present at the signing ceremony were the Chairman of Amanah Raya Berhad, Dato’ Haji Dusuki Ahmad; Chairman of Oilcorp Berhad, En.Mohamed Taib bin Mahmood, Group Managing Director of AmanahRaya, Dato’ Ahmad Rodzi Pawanteh; Group Managing Director Oilcorp Berhad, Mr.Sunny Ng Huat Tian; Chief Operating Officer, AmanahRaya Development Sdn Bhd En.Abdul Malik Abbas; and Executive Director of Oilcorp Berhad Mr.Pua Yow Liang.
Work on this 8,871sq meter freehold development will begin next month, with completion expected in late 2010.
The corporate office building sits on the entrance to the property and provides a sweeping view of almost 360 degrees of its surroundings, boasting a magnificent view of downtown Kuala Lumpur and the greenery of Lake Gardens and beyond. Furthermore, it has 400 parking lots and a total net saleable area of 420,000 sq ft, including 21,650 sq ft space on both Level 1 and 6 respectively, currently earmarked for a banking hall or a business center. The hotel suite next door compliments the ideal of having a work and life balance, and is one of Kuala Lumpur’s integrated property development which will offer both a venue to work and live.
These suites will be available for sale soon and we are pleased to offer an attractive leaseback program which will guarantee to pay a minimum 7% net returns for 5 years to each buyer.
“As the nation’s Public Trustee since 1921, AmanahRaya has made significant inroads into capital markets and financial services, and until recently through the subsidiaries, AmanahRaya Development Sdn Bhd and AmanahRaya Hartanah Sdn Bhd have taken yet another giant step to compliment and synergize its property investment activities by venturing into property development and project management services”, said AmanahRaya’s Chairman, Dato Hj Dusuki Ahmad.
“This agreement will provide a more secured structure for Oilcorp to grow its property and resort development and operation business, and would significantly reduce the business risk in term of securing future sales of office units,” said Oilcorp’s Group Managing Director Sunny Ng.
He added that the commitment from Amanah Raya Development to procure funding of RM80million towards the financing of the development will assist Oilcorp, and in turn Amanah Raya Development will enjoy 50% of the project’s pretax profit guaranteed at a minimum of RM60 million.
In his speech at the ceremony, Oilcorp’s Chairman, En Mohamed Taib Mahmood said its property division has always been an integral part of Oilcorp, contributing 20% to the Group’s revenue in 2006.
“Our aim at Oilcorp is to increase this percentage in the coming years via larger developments that we have coming on stream, such as our D’Tiara Office and Hotel Suites and our upcoming D’Tiara Leisure & Health Resort in Genting and D’Tiara Waterfront Resort development in Pulau Indah, Selangor,” he added.
Over the next 4-5 years, Oilcorp Bhd is aiming to launch 3 new property development projects, including the D’Tiara AmanahRaya Hotel Suites and Corporate Offices, which in total constitute an estimate gross development value of about RM1.2 billion.
About OilCorp Bhd
Oilcorp Bhd is an integrated holding company listed on the Main Board of Bursa Malaysia in 2005 and is predominately involved in oil and gas. It also boasts a property division involved in resort operations and it’s a major consortium member of Konsortium Perikanan Nasional Berhad. For further information please visit www.oilcorp.com.my
About Amanah Raya Berhad
Amanah Raya Berhad is a Malaysia’s premier trustee company specializing in estate administration and trust services. Established in 1921, AmanahRaya has professionally served the nation for over 85 years through its 20 branches nationwide in the area of legal, financial and administrative duties for unit trust funds and estate administration, corporate loan stocks and debentures, golf and leisure clubs, companies’ group insurance scheme, education and retirement funds. AmanahRaya is also offering investment portfolio management services for corporate clients. With an efficient, well trained, highly motivated and competent staffs, AmanahRaya has dominated the growing market for personal trust services offering convenient end-to-end solutions for managing personal wealth and assets in addition to integrated solution ranging from creating personal trust accounts, preparing and safekeeping wills, and administering the distribution of individual estates upon and after his or her demise.