Uda Holdings has signed a joint venture agreement with Tesco's Malaysian unit for a 50-50 subscription of shares in Uda subsidiary Koridor Saga.

Uda will move from wholly owning its Koridor Saga subsidiary to a 50% equity ownership of the company.

Uda has also signed a conditional agreement to sell Koridor Saga a 5.36 ha plot of land in Johor Bahru for R70m (US$18.4m). Koridor Saga plans to have a retail outlet built on the land which it will lease to Tesco.

Koridor Saga is expected to receive a gross income of R7.8m per year from the lease of its building to Tesco. Uda expects to earn an additional R1.2m net profit per year from the start of the lease due to its 50% equity ownership of Koridor Saga.