Memorandum of Agreement signed for a wellness cluster

Kuala Lumpur, 26 September 2013  Sime Darby Elmina Development Sdn. Bhd., a wholly-owned subsidiary of Sime Darby Property Berhad, Malaysia s leading developer of sustainable communities, has signed a Memorandum of Agreement (MOA) with Eastern & Oriental Berhad (E&O), a premier lifestyle property developer, to develop approximately 135 acres of land in Elmina West.

An announcement on this agreement was made to Bursa Malaysia earlier today. According to the MOA, Sime Darby Elmina will dispose the land to E&O and the purchase price will be mutually agreed by the two parties at a later stage. The land is to be developed into a wellness-themed commercial and lifestyle residential development.

Dato Wahab Maskan, Group Chief Operating Officer of Sime Darby Berhad and Managing Director of Sime Darby Property Berhad said,  This MOA is a reflection of Sime Darby Property s strategy to explore opportunities with reputable property development partners such as E&O to support and strengthen our strategic development objective and enhance the value of our landbank.

 In addition, this agreement is in line with the collaborative agreement signed between the Sime Darby Group and E&O in 2011 where we had planned to leverage on our respective strengths and share knowledge and expertise to open new market opportunities and develop new products that will benefit both our stakeholders. We are confident that this MOA would be mutually beneficial to both ?Groups, Dato Wahab added.?

Dato Wahab also said that the proposed development by E&O Group ?in Elmina West is aligned to the City of Elmina s positioning as a comprehensive township dedicated to the pursuit of a healthy and balanced lifestyle; the first in Malaysia and a benchmark in township living.

 The development will also contribute to City of Elmina s role in Selangor Vision City, in a strategic plan that will see the entire Guthrie Corridor becoming a growth catalyst for Greater Kuala Lumpur, Dato Wahab concluded.

The City of Elmina brings Malaysians a fresh concept of wellness and liveability in a holistic environment. City of Elmina embraces eight aspects of wellness namely, social, environmental, intellectual, family, occupational, physical, emotional and spiritual. The township is designed according to the specifications set out by the Mercer s Quality of Living Survey, an internationally recognised standard that measures  liveability in terms of safety, education, hygiene, healthcare, culture, environment, recreation, political and economic stability, and accessibility by public transportation. ?

The Gross Development Value of the City of Elmina is estimated to be approximately RM13 billion. This is expected to contribute positively to Sime Darby Property s bottomline for the next 10 to 15 years. The first series of homes launched in the 2nd quarter of 2013 which consist of 255 units of double-storey link houses, valued at RM188.18 million collectively, were completely sold as soon as it was launched.?

Dato Terry Tham Ka Hon, Managing Director of E&O said  This (the signing of the MOA) is a progressive step in our relationship with Sime Darby Berhad, our single largest shareholder.

 Since Sime Darby came on board, we have been exploring various projects to work on together. After much deliberation, Elmina West was chosen as the best platform to tap on E&O s proven track record and make a positive contribution to the overall City of Elmina masterplan, said Dato Tham.

He added,  E&O is encouraged by the prospects of Elmina West and its potential to be a vital new growth engine for the Group.

 At 135-acres, it is sizeable in the context of land-scarce Klang Valley and offers E&O ample opportunity to deliver a unique wellness product that meets the aspirational lifestyle needs of an increasingly discerning market.

Elmina West is part of the larger, 5000-acre City of Elmina grouping of townships along the Guthrie Corridor Expressway (GCE) in Selangor, which is easily accessible via several major highways. Connectivity to this area will be further enhanced when the proposed new Damansara-Shah Alam Elevated Expressway (DASH) is completed in 2016, providing a direct connection to Mont Kiara through Penchala Link, cutting travel time to a mere 15 minutes.

Elmina West is located at the Elmina GCE interchange and comprises the Elmina City Centre (ECC), which straddles two sides of the interchange forming an approximately ?280 acres of commercial hub. Elmina West is expected to be the heart of the City of Elmina as the ECC will be the major commercial hub, Wellness Cluster and a shopping destination of the township, drawing a large number of ready population from existing residential areas such as Bukit Jelutong, Denai Alam, Subang Bestari and Bukit Subang.

For further information please contact:

Najat Md Fuad
Head, Corporate Communications
Sime Darby Property Berhad
Tel: +603 7849 5110
Fax: +603 7849 5680
Email: najat.md.fuad@simedarby.com