news

Tadmax expands landbank via 70% stake buy in property outfit

KUALA LUMPUR (May 21): As part of its landbank expansion, Tadmax Resources Bhd is buying a 70% stake in a firm which is in the process of acquiring a strategically located piece of land in Cheras.  

This comes as Tadmax refocuses on property development, following its recently announced plan to exit from the RM3.3 billion Pulau Indah power plant project.

In an exchange filing today, Tadmax said it is buying the 70% stake in property outfit Bendera Juara Sdn Bhd (BJSB) from Maxim Holdings Sdn Bhd for RM233,334.

BJSB is in the midst of acquiring a 5.73-acre land in Alam Damai, Cheras for RM64.84 million or RM260 per sq ft from Syarikat Perumahan Pegawai Kerajaan Sdn Bhd (SPPK).

SPPK is an indirect 70.09% subsidiary of S P Setia Bhd, while the remaining stake is owned by the Ministry of Finance Inc.

BJSB initially planned to fund 80% of the acquisition via a bank facility that it had secured from Alliance Bank Malaysia Bhd prior to Tadmax’s proposal to come in as a substantial shareholder.

While BJSB has informed the bank of the latest development, Tadmax said there is no assurance that the bank will consent to continued availability of the facility.

“Nevertheless, the group endeavours to seek bank borrowings with acceptable terms and will constantly manage the group’s overall capital structure,” it said.

Tadmax currently has only one other piece of land – a 3.24-acre land in Petaling, which it is in the process of acquiring from SPPK for RM36.65 million.

On top of that, Tadmax has two ongoing property projects, namely Ganggarak Permai mixed development in Labuan covering 16.82 hectares, as well as the 1,512-unit Mizumi Residences condominium plus 1,520-unit affordable apartments Residensi Metro Kepong in Kepong.

“The property purchased by BJSB will enable Tadmax to replenish its land bank at the strategic location with potential growth,” Tadmax said.  

“This is in line with Tadmax’s aim to further strengthen its foothold in the property development and construction activities and to generate long-term sustainable income,” it added.

Shares of Tadmax rose half a sen or 2.33% to 22 sen today, valuing the group at RM172.43 million.

Stay safe. Keep updated on the latest news at www.EdgeProp.my 

Click here to see residential properties for sale in Cheras, Kuala Lumpur.

Click here for more property stories.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
SHARE
RELATED POSTS
  1. Water cut to affect 420,000 account holders in Selangor
  2. Malaysia reports five new Covid-19 cases, end of Gombak and Cheras residential clusters
  3. Where engagement and education goes hand in hand