Iskandar Waterfront City Bhd's wholly owned subsidiary Tebrau Bay Sdn Bhd, or TBSB, has signed a conditional alienation and development agreement with the state government of Johor, Malaysia, whereby the two will exchange plots of land in Plentong in the district of Johor Bahru.
Under the deal, the state government will purchase agricultural land plots from TBSB for approximately 222.8 million Malaysian ringgit, as well as appoint TBSB to develop 570 residential units and nine shop lots on three of the sites for an agreed construction cost of 189.2 million ringgit, to be paid by TBSB.
TBSB, meanwhile, will receive approximately 228.78 acres of land to be alienated by the state government at a total cost of roughly 531.9 million ringgit.
TBSB will fulfill the balance of about 309.1 million ringgit, which is the difference between the purchase price of the TBSB land and the sales price of the government land, through the payment of the construction and ancillary costs, as well as cash payments.
The deal will be funded with bank loans and/or internal funds.
As of Aug. 10, US$1 was equivalent to 4.29 Malaysian ringgit.