United Plantations has successfully acquired Pinehill Plantations Estates in Malaysia, which is an agricultural land area of 3,642 Hectares including subject properties, from Pinehill Group for a sum of RM413.57 million (RM46,000/Ha). The deal comes in place after months of tough negotiations between the two parties. Chief Executive Director of United Plantations (UP), Dato’ Carl Bek-Nielsen is therefore happy to announce that the official hand-over has taken place:
“After a number of years searching for the right land bank expansion opportunity, it was most pleasing that we officially took possession of the 3,642 Ha Pinehill Estate on 17 August 2019. We have long been eyeing this property due to its geographical location which is close to UP´s current properties as well as good accessibility and its promising agricultural potential. Theacquisition is therefore a remarkable opportunity for the UP Group”, says Dato’ Carl Bek-Nielsen.
The estate, which henceforth will be named Tanah Rata, is located in the Lower Perak Region approximately 25 km from UP’s headquarters . Theacquisition increases UP’s land bank size in Malaysia by almost 10%. As the acquired land is an old established plantation (brownfield land), UP will comply fully with its No Deforestation Policy and will over the next few years transform the Subject Properties to produce certified sustainable palm oil in accordance with the criteria of the Round Table on Sustainable Palm Oil (RSPO).
“Within the next three years, we will replant a majority of the acquired land and by introducing UP’s high yielding planting materials combined with our total commitment towards enforcing sustainable practices, we will be able to increase the yields significantly on this 8,999-acre property within the next 4-6 years, says Dato’ Carl Bek-Nielsen.
“Finally, we remain confident and committed to long term investments in Malaysia and especially in our home state of Perak where we have operated since 1906 and look forward to continuing creating value for all stakeholders, ” concludes Dato’ Carl Bek-Nielsen.