Takaso plans RM45.4 mil PJ property venture via stake buy

GEORGE TOWN (Sept 30): Loss-making Takaso Resources Bhd, which is buying a 50% stake in a firm that owns two pieces of contiguous tracts measuring some 32,206 sq ft (0.3ha) in Petaling Jaya, Selangor, for RM6 million cash, intends to carry out a RM45.5 million residential project on the land.

In a statement yesterday, Takaso said it had inked a conditional share sale agreement with A.W. Impian Land Sdn Bhd (AWIL) for the deal. The price is equivalent to about 50% of the market value of the lands.

Takaso, a manufacturer of baby products, condoms and toys, said the acquisition is part of its plan to diversify into the property development sector.

“We are very pleased to have found this opportunity at a very good price and valuation. There are always opportunities during times of crisis. Moving forward, property development will be the key driver in turning around Takaso,” said its executive director Billy Ong Kah Hoe.

Ong said a development order (DO) for the project had already been obtained by AWIL, but Takaso would be submitting amendments to the DO.

The new development will consist of 39 units of three -storey town houses, subject to regulatory approvals. Ong said the proposed development is expected to commence in a year from the date all approvals are received, and is expected to be completed in three years.

The group further reasoned that the move would balance its income stream from non-traditional sources and lessen any future negative industry impact on its traditional business industry.

The acquisition will be funded by a mix of internally-generated funds and/or bank borrowings.

This article first appeared in The Edge Property pullout, on Sept 30, 2015.