Ivory Properties expands landbank with RM133.86m acquisition in Sitiawan

KUALA LUMPUR (Oct 31): Ivory Properties Group Bhd is planning to buy a plot of commercial land in Sitiawan, Perak, for RM133.86 million, for property development purposes.

In a filing, Ivory Properties said its wholly-owned unit Sunlink Properties Sdn Bhd has inked a sale and purchase agreement with the land owner Remco Engineering & Construction Sdn Bhd for the buy.

The land, measures some 259,100 sq m, the filing said. The purchase consideration for the land was arrived at, based on the indicative market value of not less than RM48 per square feet, “which is equivalent to not less than RM133.87 million”.

“Ivory will appoint an independent property valuer registered with the Board of Valuers, Appraisers and Estate Agents, Malaysia, to undertake a valuation of the Land,” the company said. It added that the independent market value will be issued later.

Ivory Properties intends to fund the purchase via internal funds and borrowings, the breakdown of which it has yet to finalise. 

The vacant leasehold plot, which is currently charged to Malaysia Building Society Bhd, is located “within the prime area of Seri Manjung” and is just a few kilometres away from the town centres of Sitiawan and neighbouring Lumut.

“The proposed acquisition is part of Ivory’s business plans to strengthen its land banks and develop the same into either commercial or residential properties in the future, based on plans to be drawn up by Sunlink, [and] as may be approved by the relevant authority,” the company added.

With the acquisition, Ivory Properties said its landbank will increase to 123 acres, from 59 acres presently, which will give it earnings visibility for the next seven years.

The proposed acquisition is expected to be completed by the first quarter of 2019.

Shares of Ivory Properties closed half a sen or 1.32% higher at 38.5 sen today, giving it a market capitalisation of RM188.68 million. — theedgemarkets.com

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