BUSINESS

L&G ACQUIRING PUCHONG LAND FOR RM67.04 MLN TO DEVELOP APARTMENT PROJECT

10/01/2022 08:04 PM

KUALA LUMPUR, Jan 10 -- Land & General Bhd (L&G) has proposed to acquire a 1.44-hectare leasehold commercial land in Pekan Desa Puchong, Selangor, for RM67.04 million, for the development of serviced apartments.

The property developer said its indirect wholly-owned subsidiary, Billion Megastar Sdn Bhd, today inked a conditional agreement to buy the land from Hartanah Idaman (M) Sdn Bhd. 

In a filing with Bursa Malaysia, it said the purchase price would be satisfied by cash and/ or external borrowings. 

L&G said the proposed purchase would give it a strategically located parcel of land within walking distance of IOI Puchong Jaya LRT station and IOI Shopping Mall in the mature and easily accessible Puchong township.

“(The property) has a strong earnings potential owing to the type of units to be developed and the anticipated selling prices for this project, which the management believes should be attractive to new homebuyers,” the company said.

L&G said it aimed to develop serviced apartments which would be affordably priced, targeting the bottom 40 per cent (B40) and middle 40 per cent (M40) income groups.

Barring any unforeseen circumstances, it said, the proposed acquisition was not expected to have any immediate material impact on the group’s net assets (NA) for the financial year ending March 31, 2022. 

However, it is expected to enhance the NA of the L&G group through the contribution in earnings in the future financial years when the property is developed and sold progressively.

The effect of the proposed acquisition on the gearing of the group would depend on the funding mix and timing of utilisation of bank borrowings to finance the proposed acquisition, said L&G. 

-- BERNAMA


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