Uni Wall, Pemodalan Kedah team up on RM2.3b GDV university projects

• The first memorandum of agreement (MOA) was entered between Uni Wall’s subsidiary Uni Wall Properties Sdn Bhd and PKB for the development of University City in Kubang Pasu, Kedah, with a covering area of approximately 604,610 square metres and located next to University Utara Malaysia (UUM).

KUALA LUMPUR (Dec 12): Uni Wall APS Holdings Bhd (KL:UNIWALL) on Thursday entered into two separate agreements with Menteri Besar Kedah Inc-owned investment company Permodalan Kedah Bhd (PKB) to develop three university projects with a combined gross development value (GDV) of RM2.30 billion.

The first memorandum of agreement (MOA) was entered between Uni Wall’s subsidiary Uni Wall Properties Sdn Bhd and PKB for the development of University City in Kubang Pasu, Kedah, with a covering area of approximately 604,610 square metres and located next to University Utara Malaysia (UUM), the home-grown building facade specialist said in a filing.

The project GDV is worth RM2 billion. Under the agreement, Uni Wall Properties will finance and develop the project and is entitled to receive 85% of the project’s GDV, while PKB will receive 15%.

Both parties will collaborate on developing the land, including investment-related projects, technical institutions, medical faculty hospitals, campuses, students’ hostels and other business buildings.

The parties will also conduct feasibility studies to assess the land's development potential within two years or longer if needed, as well as formalise the partnership into a joint venture (JV) to establish their cooperation.

In a separate filing, Uni Wall Properties has also entered into two build, operate and transfer agreements with PKB to jointly develop two building projects — Desasiswa@USM and Gerbang@USM — for the Universiti Sains Malaysia (USM) engineering campus.

Under the agreements, Uni Wall Properties will develop and operate both Desasiswa@USM and Gerbang@USM at its own cost and expenses for up to 21 years, with the option to extend for another nine years. The GDV for both projects will reach RM298 million over the next 30 years.

The group said it intends to fund all three projects via internally generated funds and external borrowings. As at end-June, Uni Wall’s cash and bank balances amounted to RM809,000 while its borrowings stood at about RM13.49 million.

The Desasiswa@USM will comprise 420 room units and eight kiosks, while Gerbang@USM will comprise 10 units of double-storey shop offices, a mall, futsal sports complex, petrol pump station, and fast food restaurant, including public amenities.

Uni Wall Properties shall receive the rental proceeds collected by USM as stipulated in the agreement, according to the filing.

“The project will facilitate the expansion of the group’s business activities to broaden the group’s future earnings as part of its initiatives to achieve improved financial performance,” it said.

“The board is of the view that the group is expected to strengthen its business prospect and financial condition through its collaboration with PKB to develop the project land,” it added.

Uni Wall was not traded on Thursday. It last settled at 79 sen, giving the group a market capitalisation of RM577.8 million.

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