Mar 5, 2010

New building for Star radio stations and multimedia ops

PETALING JAYA: Star Publications (M) Bhd will soon have its own building to house its three radio stations and its expanding multi-media business at its current property at Section 13 here.

Universiti Tunku Abdul Rahman (UTAR) has also been earmarked to have its new city campus located at the site, which could take in up to 10,000 students as part of its expansion plan.

The university would have the option of a 25-year rental lease on the purpose-built campus, Star said in a filing with Bursa Malaysia.

This follows Star’s joint-venture agreement with JAKS Island Circle Sdn Bhd, a 51% owned subsidiary of JAKS Sdn Bhd which in turn is a wholly-owned unit of JAKS Resources.

The proposed development will comprise two office blocks, a commercial-cum-educational block of 20 storeys and a residential block of 15 storeys with a gross development value (GDV) of RM370mil.

The project, expected to be completed within 60 months, will be developed on a piece of land owned by Star measuring 24,568 sq metres.

Under the agreement between Star and JAKS Island Circle, Star will be entitled to 30% of the GDV or RM111mil, whichever is higher based on the plot ratio of 1:3.5.

The proposed development would not have any effect on the issued and paid-up capital and shareholdings of substantial shareholders of the company.

“The proposed development is not expected to have any material impact on the earnings, net assets and gearing of the group for the financial year ending Dec 31, 2010,” it said, adding that the project was expected to enhance the group’s net assets in the long term.

The cost of development, estimated at RM280mil, will be borne by JAKS Island Circle.

STAR :  [Stock Watch]  [News]

JAKS :  [Stock Watch]  [News]

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