Ireka | 23-4-2015
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23-4-2015

IREKA PROPOSES DISPOSAL OF SENAWANG LAND TO AEON FOR SUPERMARKET CONSTRUCTION

 

Kuala Lumpur, 23 April 2015: Ireka Corporation Berhad (Ireka) met shareholders today on the single issue of disposing its land in Senawang, Negeri Sembilan to Japanese-owned AEON for the sum of RM 53.662 million. This 20.88 acre site is earmarked for a shopping centre serving the neighbourhoods of Seremban, Seremban 2 and Kuala Pilah.

 

Ireka Engineering & Construction Sdn Bhd (IECSB), a wholly owned subsidiary of Ireka, is disposing the land. At the same time, it has entered into a construction contract with AEON for the appointment of IECSB to construct the shopping centre and car park on the land for a total maximum price of RM203.139 million. The disposal price to AEON includes land conversion premium, earthworks and infrastructure costs.

 

This transaction provides a good opportunity for Ireka to employ its capability as both a developer and design & build contractor to serve multi-national corporations such as AEON.  Not only is Ireka able to source, purchase and improve on a piece of land in terms of approvals, it can also build on the land, giving AEON a hassle-free option to developing a shopping centre.

 

On the development front, Ireka has projects with Gross Development Value of approximately RM2 billion and this will keep the company busy for the next 5 years. It is always the company’s intention to expand into property development, particularly in the mid-market section and this is why Ireka has launched its new zenZ brand in 2014. Building on the recognisable high-end i-ZEN brand, the new zenZ developments will also bring with it modern designs and practical touches without compromising on style. Properties under the zenZ brand include the Kasia Greens development in Nilai which is 100% sold and due to be handed over to proud owners this month. Two other projects, Dwi@Rimbun Kasia Courtyard Homes, also in Nilai and ASTA Enterprise Park (Ireka’s first foray into the industrial sector), located in Kajang are expected to come on stream over the next few months.

 

Ireka is moving in the right direction with its construction order book worth about RM1.4 billion, of which about RM900 million is still outstanding. The company’s 23% stake in London-listed Aseana Properties Limited is also expected to be realized as the latter has plans to divest its assets and returning capital to its shareholders, including Ireka, as early as this year.

 

Commenting on this, Ireka’s new Executive Chairman, Datuk Lai Siew Wah says, “I am delighted with Ireka’s strategy for development over the next few years, especially as we reach our 50th birthday in 2017. I am also hopeful that with Aseana’s plans to realize their assets, we will be able to get our capital returns. Ireka is determined to continue providing value for our shareholders and this is the Board’s top priority.”

 

 

 

 

ASTA Enterprise Park in Kajang – Ireka’s first foray into the industrial sector

 

 

 

The courtyard-style apartment, dwi@Rimbun Kasia in Nilai

 

 

 

Kasia Greens – a modern and sophisticated lifestyle development