Hua Yang acquires Ipoh land to develop RM295.1 mil mixed project

KUALA LUMPUR (May 5): Property developer Hua Yang Bhd is acquiring a 3.8-acre parcel of land in Bandar Meru Raya, Perak, which will be developed into a mixed project with a gross development value (GDV) of RM295.1 million.

In a filing with Bursa Malaysia today, Hua Yang said its wholly-owned subsidiary Yoon Lian Realty Sdn Bhd has entered into a conditional sale and purchase agreement with Bumi Semarak Development Sdn Bhd to acquire the piece of land for RM15.31 million.

Bumi Semarak had acquired the piece of land for RM10.26 million on Dec 26, 2012.

"This proposed acquisition is in line with our objective to expand our presence in Perak. The completion of this acquisition will enable us to tap into the high growth and fast developing Bandar Meru Raya, which is known as an integrated and efficient township," said Hua Yang chief executive officer Ho Wen Yan in a statement today.

"We plan to leverage on our expertise, experience and positive track record to offer quality, affordable and innovative homes to the expanding population in this dynamic economic area," he added.

The acquisition will be satisfied through internal funds and/or bank borrowing and is expected to be completed by the second quarter of the financial year ending March 31, 2018.

"This exercise is also in line with our aim of replenishing our current landbank and the completion of the acquisition will put us one step closer towards our goal in achieving a total undeveloped landbank GDV of RM5 billion. Additionally, in the long term, we expect this acquisition to contribute positively to the group's earnings," said Ho.

Hua Yang plans to develop 720 units of serviced apartments and 72 units of commercial shop lots on the site.

However, the group said it is currently too preliminary to ascertain the total development cost of the proposed mixed project, the expected commencement date, as well as the expected profits to be derived from the development of the property. However, the development cost of the property will be funded by internal funds.

Hua Yang shares closed unchanged at RM1.08 today, giving it a market capitalisation of RM380.16 million. — theedgemarkets.com

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