KUALA LUMPUR (Dec 6): HCK Capital Group Bhd is buying a plot of leasehold land in Mukim Sungai Buloh, Selangor, which has been earmarked for a mixed commercial development, for RM80 million from Perbadanan Kemajuan Negeri Selangor (PKNS).
The land, measuring some 435,615.45 sq ft, is situated on Jalan Zuhal U5/179 in Seksyen U5, Shah Alam, its filing on the proposed acquisition today read.
"Some of the landmarks in the vicinity are The Star Avenue Lifestyle Mall, HELP University, HELP International School and Skypark Subang Airport.
"The land is currently a vacant parcel and is intended for mixed commercial development. As at the date of this announcement, the development plan for the land has yet to be finalised and is still at the preliminary stage," it said.
Nevertheless, HCK Capital Group will benefit from the future development on the land, which will in turn broaden and expand its earnings base and improve its long-term growth prospects, the filing read.
"The total development costs and the expected profits to be derived from the development of the land have yet to be ascertained at this juncture as the detailed development plan is pending finalisation," it added.
The proposed acquisition, to be undertaken via HCK Capital's indirect unit HCK Bestari Sdn Bhd, is regarded as a related party transaction, as HCK Bestari is 70%-owned by Binary Binajaya Sdn Bhd (BBSB) and 30%-owned by Datumcorp International Sdn Bhd (DISB), with the latter being a wholly-owned unit of PKNS.
Binary Binajaya, meanwhile, is 70%-owned by HCK Properties Sdn Bhd — a wholly-owned indirect subsidiary of HCK Capital.
The buy will be funded by a combination of some RM10.5 million raised from its recently completed rights issue of warrants, internal funds, and bank borrowings, HCK Capital added.
HCK Capital shares were not traded today. It last closed at RM1.32 on Dec 3, for a market capitalisation of RM555.95 million. — theedgemarkets.com