Gamuda to acquire S$345.86m land in Toa Payoh in Singapore joint venture

KUALA LUMPUR (June 25): Gamuda Bhd will acquire a 12,154.6 sq m parcel of leasehold land in Toa Payoh, Singapore, for S$345.86 million (RM968.81 million) in a joint venture (JV) with Evia Real Estate (7) Pte Ltd and Maxdin Pte Ltd.

In a filing with Bursa Malaysia today, Gamuda said the Gamuda-Evia-Maxdin JV had on June 23 obtained approval from the Singapore Housing Development Board to acquire the land.

The current type of allowable development on the land is condominium or flats, or a combination of flats and strata landed houses.

"The acquisition and proposed Toa Payoh development represent an excellent opportunity for the group to make its maiden presence in Singapore and to participate in a development which is strategically located in a mature residential area," said Gamuda in a statement.

The company describes the land parcel as being in "one of Singapore’s choice locations in view of its proximity to MRT lines and stations".

It adds that, "The proposed Toa Payoh development is expected to contribute positively to the future earnings and thereby improve shareholders’ value over the medium to long term."

The acquisition should be completed by the third quarter of 2015 and will be funded via a combination of cash and bank borrowings, to be satisfied by the JV company.

Following the regulatory approval, a JV company will be formed in which Gamuda, via its wholly-owned subsidiary Gamuda (Singapore) Pte Ltd, will have a 50% stake. Evia and Maxdin will hold 20% and 30%, respectively.

Gamuda shares closed at down 1.81% at RM4.87, putting its market capitalisation at RM11.79 billion.