Angkasa to take up two Nexgram property projects for RM1.44b

PETALING JAYA: Angkatan Koperasi Kebangsaan Malaysia Bhd (Angkasa) through its unit MyAngkasa Bina Sdn Bhd has entered into an off take cum sale and purchase agreement with Nexgram Holdings Bhd's subsidiaries, to take up two property development projects being developed by the group in Cyberjaya and Putrajaya respectively, for RM1.44 billion.
The core business of MyAngkasa is in property development and construction targeting co - operatives markets since it is a subsidiary of Angkasa which falls under the purview of the Malaysia Co - Operative Societies Commission.
Nexgram told Bursa Malaysia that MyAngkasa Bina will pay RM1.147 billion for the Cyberjaya development, which consists of a mixed commercial development known as "Angkasa Icon City" to be undertaken by Nexgram Land Sdn Bhd on a freehold land measuring 5.906 acres owned by Nextnation Datacity Sdn Bhd; and RM297.387 million for the Putrajaya project, which is a mixed property development, to be procured from Top Valley Sdn Bhd.
The construction costs for the Cyberjaya and Putrajaya projects are RM639.8 million and RM266.2 million respectively.
Costs for the projects will be financed via a combination of the proceeds raised from the rights issue completed on Jan 22, 2014 (for Cyberjaya Project only), bank borrowings and future possible funding exercise.
However, Nexgram said, the exact funding mix for the projects could not be determined at the moment as it is contingent upon the eventual amount of bank borrowings to be procured by Nexgram Land, Nextnation and Top Valley.
It said it will also look at any future possible funding exercise which may include the issuance of securities of Nexgram.
"Following the offtake of the projects by MyAngkasa, the company's future earnings visibility would be enhanced and this marks a success for the company's diversification into the property development sector," it said in a statement with Bursa Malaysia yesterday.
Angkatan Koperasi is a co- operative established in May 1971 under the Co - Operative Societies Ordinance (1948)
to unite all co- operatives with the main purposes of: - representing Malaysian co - operative movement at both national and international levels; striving for, supervising and protecting the interests and developments of its co- operatives members especially as well as the co-operative movement in general; and easing the operations of co-operative members.