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UEM Sunrise & Mulpha International Sign Maiden Collaboration Agreement

Kuala Lumpur, Tuesday 6 May 2014 – UEM Sunrise Berhad (“UEM Sunrise”) and Mulpha International Berhad (“Mulpha International”) today inked a Collaboration Agreement that will see its respective subsidiaries, Nusajaya Rise Sdn Bhd (“NRSB”) and Leisure Farm Corporation Sdn Bhd (“LFC”) build three sets of roadworks in the vicinity of Iskandar Malaysia, that will improve access into and from this thriving southern township. This is the first time the two companies, both long-established property developers, will work together.

The joint venture of 59:41 owned respectively by NRSB and LFC signed today, valued approximately at RM107 million, will result in the creation and upgrade of roads in Gelang Patah and Gerbang Nusajaya to jointly serve the needs of the population of Gerbang Nusajaya and Leisure Farm Resort.

The collaboration agreement was inked at a signing ceremony held in Kuala Lumpur today, with UEM Sunrise represented by Mr. Raymond Cheah, Chief Operating Officer, Commercial and Mulpha International by Mr. Eric Lee, Chief Financial Officer and witnessed by UEM Sunrise’s Executive Director, Dato’ Izzaddin Idris and Mulpha International’s Executive Chairman Mr. Lee Seng Huang. Detailing the agreement, Dato’ Izzaddin said that under the original plan for the Gerbang Nusajaya development, NRSB is to construct and/or upgrade all roads in the vicinity of its development as a condition to obtain the local government approvals for development. LFC in the meantime had obtained approvals from the local authority to build the three interchange roads to better serve the needs of its Leisure Farm Resort community.

“However, in view of the proximity of NRSB’s interchange road to that of LFC’s, NRSB proposed to LFC that we enter into a collaboration agreement to carry out the construction of the common roads, so as to jointly meet the needs of our respective communities. This ultimately resulted in the two parties agreeing to build the three sets of roadworks,” he said.

“The joint venture will create a mutually beneficial transport ecosystem around Gerbang Nusajaya, Gelang Patah and Leisure Farm Resort which are located in close proximity to each other. It will also enhance accessibility to and from the area, putting in place good infrastructure for other catalytic developments to strive in Gerbang Nusajaya. We are confident that our strategic partnership with Mulpha International will further develop Nusajaya as a driving economic force in the region”, added Dato’ Izzaddin.

Commenting on Mulpha International’s involvement, Lee said, “Our collaboration is set to create a direct link from Gerbang Nusajaya and Leisure Farm Resort, to the Malaysia-Singapore Second Link (“Linkedua”). For the many commuters in the vicinity of Gerbang Nusajaya and Leisure Farm Resort who travel to Singapore – this highway interchange project will significantly cut travel times to and from the Linkedua, from the current 15 minutes to just five minutes. For owners and investors of real estate in the area as well as Leisure Farm, it will mean greater capital gains and value appreciation. As a pioneer in Iskandar Malaysia, I recall that when Leisure Farm Resort was launched in 1991, the bungalow land was transacting at RM6 to RM9 per sq ft, today the same lots are exchanging at 20 times that value, reaching almost RM200 per sq ft. With this new interchange, prices should continue to set new records.

“More than just a set of roadworks and highway interchanges, this highway project epitomes Mulpha International’s development philosophy of long term value creation through our focus on quality and reinvestment in the communities that we build in the Asia Pacific region. The interchange will not just benefit the stakeholders of Gerbang Nusajaya and Leisure Farm Resort — it will add value to the overall Iskandar Malaysia, improving infrastructure and connectivity. It is for this reason that we welcomed UEM Sunrise’s initiative to work together.”

The three roadworks are as follows:

• Roadworks 1 : connecting Gelang Patah to both Gerbang Nusajaya and Leisure Farm Resort, will include upgrading the existing state road from two-lane to a dual two-lane, constructing a new dual three-lane road and constructing a one-lane slip road from/into the Linkedua.
• Roadworks 2 : connecting Linkedua to Leisure Farm Resort, will include upgrading the existing state road from two-lane to a dual two-lane
• Roadworks 3 : will comprise constructing the interchange from the Linkedua to Gerbang Nusajaya including the link road to Linkedua (towards Singapore)

Roadworks 1 and 2 are targeted for completion by December 2016, while Roadworks 3 is expected to be completed in December 2018.