Page 180 - S P Setia Annual Report 2013
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178 | Financial Statements S P SETIA BERHAD GROUP Annual Report 2013





NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2013 (CONT’D)






49. SiGniFicant eVentS PenDinG cOmPletiOn

The following are the status of corporate proposals that have been announced by the Group and the Company but not completed as at 31
October 2013:

(a) Disposal by Bandar Setia Alam Sdn Bhd (“Bandar Setia Alam”), a wholly owned subsidiary of S P Setia, of approximately 30.5 acres
of freehold land (“Original Land”) located within Precinct 1 of the Setia Alam township (“Said Land”) to Greenhill Resources Sdn Bhd
(“Greenhill”) for a total consideration of RM119,572,200 and joint venture between Bandar Setia Alam and Lend Lease Asian Retail
Investment Fund 2 Limited (“ARIF”), a wholesale real estate development fund managed by Lend Lease Investment Management Pte
Ltd, for the development of a retail mall on the Said Land (“Retail Mall”), as announced on 2 July 2008.

On 15 July 2009, Bandar Setia Alam entered into several agreements to refect certain changes including the disposal by Bandar Setia
Alam to Greenhill of approximately 14.31 acres of the Original Land (“Stage 1 Land”) for a total consideration of RM56.1 million and the
remaining 16.19 acres of the Original Land (“Stage 2 Land”) for a total consideration of RM63.5 million.

The Retail Mall was constructed on the entire Stage 1 Land and a portion of the Stage 2 Land. Bandar Setia Alam and Greenhill are in
discussions to enter into supplemental agreements to refect the utilisation of part of Stage 2 Land for the construction of the Retail
Mall. Pending fnalisation of terms and execution of the supplemental agreements between Bandar Setia Alam and Greenhill, the
disposal of the Stage 2 Land has not been taken up in the fnancial statements;
(b) On 26 October 2009, a subsidiary of S P Setia Berhad, Setia Lai Thieu Limited (“Setia LT”), had entered into an In-Principle Agreement
with Investment and Industrial Development Corporation (Becamex IDC Corp) (“Becamex”) for the assignment of the implementation
and development of an independent mixed-use real estate project on a piece of land measuring approximately 108,400 square metres
or 26.79 acres located in Lai Thieu Town, Thuan An District, Binh Duong Province, Vietnam (“Land”) from Becamex to a company to be
established by Setia LT in Vietnam for a total consideration of USD16,260,000.

As announced on 11 March 2010, the People’s Committee of Binh Duong Province has on 10 March 2010 issued the Investment
Certifcate for the establishment of Setia Lai Thieu One Member Company Limited (“NewCo”) to undertake the development of EcoXuan
Lai Thieu on the Land for a term of 50 years from the date of issuance of the Investment Certifcate.

On approval of the masterplan in the scale of 1/500 for EcoXuan Lai Thieu, the area of the Land was increased from 108,400 square
metres to 109,685 square metres (27.10 acres) and by the increase in land area, the total consideration payable to Becamex was
adjusted to USD16,452,750 based on the rate of USD150 per square metre.

The balance of the consideration is payable upon the issuance of the land use right certifcate in the name of Setia LT;
(c) On 29 November 2012, Sentosa Jitra Sdn Bhd (“Sentosa Jitra”), a 50% owned subsidiary of S P Setia Berhad, entered into a Privatisation
Agreement with the Government of Malaysia (“Government”) and Syarikat Tanah dan Harta Sdn Bhd to undertake the development
and construction of a new integrated health and research complex to be known as the 1NIH Complex for the Government on a piece
of land in Setia Alam, Selangor measuring approximately 41.115 acres (“Project Land”) by way of land swap for another piece of land
measuring approximately 51.568 acres along Jalan Bangsar, Kuala Lumpur.

As announced, the Privatisation Agreement is conditional upon, inter-alia, the transfer of the Project Land to the Government and
the submission of a letter of offer that Sentosa Jitra has secured the project fnancing in respect of the 1NIH Project within 9 months
from the date of the Privatisation Agreement. Pursuant to the terms of the Privatisation Agreement, the period for fulfllment of the
conditions precedent has been extended to expire on 28 June 2014; and
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