Al Batha buys 40pc stake in Malaysian realty JV.
(Image: batha.gif )
The UAE-based business conglomerate, Al Batha Group, said it has bought a 40 per cent stake in Bukit Kiara Capital, a boutique real estate developer in Malaysia, as part of its initiative to expand its footprints across international markets.
The acquisition will lead to a new Malaysian company under the name of Al Batha Bukit Kiara Holdings (ABBK). Al Batha Group will hold 40 per cent stake in ABBK while Bukit Kiara Group would have 60.
Announcing the new entity at a press conference and signing ceremony in Dubai, officials of both the companies said the new business entity will undertake property developments in Malaysia and the UAE.
Commenting on the significant move, Sheikh Salem Bin Mohammed Bin Sultan Al Qassimi, vice chairman of Al Batha Group, said: 'Both Al Batha and Bukit Kiara share synergy in business interests and the acquisition will lead to leveraging each other's strength across various realty initiatives.'
'It is also a coming together of values the two Groups share in common,' he noted.
Al Batha Group consists of more than 20 autonomous companies with diverse business interests spanning automobiles, pharmaceuticals, contracting, manufacturing, electronics, FMCG, real estate and education. The Group employs over 4,500 people across its businesses.
The Bukit Kiara group managing director, NK Tong said: "We see great synergy in this merger, especially in the similarities of values and business ethics between the two groups."
"We are passionate about integrity. Al Batha subscribes to a strong code of business ethics. In today's business world where customers are getting more sophisticated, these two values particularly will go a long way to enhance our businesses with a long term view."
The new entity will result in eight companies that are related to property development and previously 100 per cent owned by Bukit Kiara Capital, now to be part of ABBK Holdings.
These companies include the group's flagship company Bukit Kiara Properties (BKP), an ISO certified organisation that is well known for its innovative developments of Aman Kiara, Hijauan Kiara and the VERVEA Suites, all located in the prestigious expatriate neighbourhood of Mont'Kiara, Kuala Lumpur.
The other companies related to property development and services which will form part of the new entity are Bukit Kiara Interiors (BKI), Bukit Kiara Builders (BKB), Bayland, Bukit Kiara Properties Services (BKPS), Tunas Landscape, Enchanting Lifestyle and Pristine Springs.
Relating how this merger came about, Tong said, 'Al Batha and Bukit Kiara were introduced to each other over three years ago when the former expressed interest in co-developing the Malaysian company's second tower in the property development, VERVEA Suites with us.'
"We realised that Al Batha Group was better off as an investor in the apartment units than as a co-developer, because our profit margins are very reasonable and we offer good value to our customers, which appealed to Al Batha," he explained.- TradeArabia News Service
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|Publication:||TradeArabia (Manama, Bahrain)|
|Date:||Oct 20, 2008|
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