Danny Tan to buy 5 sites in Iskandar

Posted by Sean Lim on March 22, 2017

MALAYSIAN tycoon Danny Tan is poised to take control of a little-known Singapore-listed firm, in a deal involving five sites in the bustling Iskandar growth belt worth an estimated RM3 billion (S$1.16 billion). The company, Albedo, a steel and raw materials trader, has signed a non-binding deal with Temasya Cergas, a private vehicle of Mr Tan, 58, a prominent property developer.


According to the report, Albedo would buy the five sites in Iskandar's key Nusajaya zone by issuing new Albedo shares - a move which could result in a "reverse takeover". This means Mr Tan could finish up with enough Albedo shares to be the new controlling owner of the company, listed on the Singapore Exchange's second Catalist board for smaller companies. The planned acquisition of the Iskandar land, it hopes, will provide an opportunity to venture into new business areas of potential growth.

The announcement had no details on the purchase price, but one analyst conservatively estimates the land's value to be more than RM3 billion. The parcels, ranging from 12ha to 113ha, are in Iskandar's flagship development Nusajaya. They are earmarked for an integrated business park and mixed commercial and residential developments.

There is also rising visibility of the "Iskandar play" on the bourse here. The appeal of Iskandar, an economic zone three times the size of Singapore, is largely premised on its proximity to the Republic. That is set to grow stronger once a high-speed rail line linking Kuala Lumpur and Singapore is built. Abundant land and the healthy exchange rate also add to the value proposition.

Keen to find out more about Iskandar properties? You may at the same time, check out Malaysia housing loans offered by Singapore banks. Prepare yourself with all options before purchasing!


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Topics: Malaysia

Written by Sean Lim

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