KUALA LUMPUR (May 25): Asian Pac Holdings Bhd has proposed to buy 74 acres of land in Petaling Jaya for RM300 million, for the purpose of future property development.
The purchase of the land was formalised after its wholly-owned BH Builders Sdn Bhd inked a conditional sale and purchase agreement with Jiwa Murni Sdn Bhd, Asian Pac said in a filing with Bursa Malaysia today.
“The sizable lands will fit a wider mix of products when being developed. Furthermore, the lands are easily accessible via major highways like New Pantai Expressway and KESAS (Klang-Shah Alam Expressway),” the property development firm said.
“The lands’ strategic location and easy access to major highways makes it a suitable site for mixed development and will serve as valuable landbank for the group’s property division,” the filing added.
Based on the 74 acres size and RM300 million purchase price which was arrived at on a “willing-buyer, willing-seller” basis, Asian Pac is buying the vacant land at RM111.69 per sq ft.
“The lands have an indicative market value of RM286 million, as appraised by Knight Frank Malaysia Sdn Bhd on Dec 5, 2017,” the filing added.
Asian Pac will pay for the purchase with internal funds or bank borrowings, it said. As at end-March, Asian Pac’s cash and bank balance stood at RM68.98 million.
Asian Pac will make the payment in two tranches via a deferred payment mode.
To complete the land purchase, the firm will seek approval from relevant authorities, as well as its shareholders, at a meeting to be convened later.
After careful deliberation and considered all aspects, Asian Pac's board of directors is of the opinion that the proposed land buy is in the company’s best interest, the filing added.
Barring unforeseen circumstances, Asian Pac expects to complete the land purchase by the fourth quarter of 2019.
Asian Pac brands itself as a lifestyle developer. It has property development projects across Kuala Lumpur, Johor and Sabah. It also owns and operates Imago Mall in Kota Kinabalu, Sabah.
At 5pm today, Asian Pac shares closed unchanged at 15 sen, for a market capitalisation of RM155 million. — theedgemarkets.com