PETALING JAYA: UEM Sunrise Bhd has entered into a strategic partnership with EXSIM KLCC Sdn Bhd to develop its 1.6-acre freehold land known as Lot 149, located at the junction of Jalan Ampang and Jalan P Ramlee in Kuala Lumpur City Centre, under a Development Rights Agreement (DRA) that guarantees the property developer an entitlement of RM415mil.

Under the agreement, UEM Sunrise will grant EXSIM KLCC the rights to undertake and complete the development of the prime site.

Besides the guaranteed entitlement, the DRA also includes a profit-sharing mechanism that allows UEM Sunrise to participate in the project's future upside.

In a filing with Bursa Malaysia, UEM Sunrise added the arrangement was selected after evaluating various development proposals, describing it as the preferred commercial structure that balances value creation, prudent risk allocation and long-term shareholder value.

Its managing director and chief executive officer, Shaharul Farez Hassan, said the partnership reflects UEM Sunrise's disciplined approach to portfolio optimisation and capital allocation.

"This enables us to realise the full potential of a strategic asset while participating in the success of the development," he said in a statement.

He noted the collaboration would allow the company to leverage EXSIM KLCC's expertise in the premium KLCC market while enabling UEM Sunrise to focus on its own development pipeline across priority growth corridors.

Source by: The Star