UDA Holdings Bhd (UDA Holdings) has decided to sell its 1.5ha land in Jalan Sultan Ismail here for RM215.5 million to Mutiara Goodyear.

Its chairman, Nur Jazlan Mohamed, said the money is to pay the balance in premium for the former Pudu Prison site, amounting to RM104 million, which has to be made by September.

The move, he said, would strengthen UDA Holdings cash flow, which now totalled RM90 million.

"On that consideration, UDA Holdings has to sell the land to Mutiara Goodyear, which is offering the best price at more than RM1,400 per sq ft compared with the market price of RM800per sq ft.

"Apart from that, UDA Holdings has checked on Mutiara Goodyear Bhd and found that it is a bumiputera company," he said in a statement Wednesday.

He was clarifying statements by Umno Youth Information chief Reezal Merican Naina Merican and the movement's executive council member, Tengku Azman Tengku Zainol Abidin, published by the media today, that the sale of the land was a loss to the bumiputera.

However, Jazlan said the sale of the land would depend on the Finance Ministry's approval.

He said that UDA Holdings had initially planned to develop the land on a joint venture, but decided against it as the move would expose the company to higher risks.

UDA Holdings, he said, had to sell of its land from time to time to strengthen its cash flow as it did not receive financial aid from the government.

"Between 2004 and 2005, UDA Holdings, then under Malaysian Resources Corporation Berhad (MRCB), also sold its land in Bangsar to UOA (UOA Development Bhd)," he added.

He invited Reezal Merican and Tengku Azman to his office so that he could enlighten them on the matter. - Bernama