KUALA LUMPUR (Aug 26): Lagenda Properties Bhd, formerly known as DBE Gurney Resources Bhd, is buying five parcels of leasehold agriculture land in Tapah, Perak that it plans to develop into an affordable housing township.

The group said it will pay RM1.10 per sq ft, or a total of RM29.86 million, for the land measuring 623.07 acres in aggregate.

The land, which is currently owned by with UEM Sunrise Bhd’s subsidiary Symphony Hills Sdn Bhd, has a market value of RM31 million, Lagenda said in a filing to Bursa Malaysia.

The group said its wholly-owned unit DBE Development Sdn Bhd has yesterday entered into a conditional sale and purchase agreement with Symphony Hills.

“The board believes that the proposed land acquisition shall contribute positively to the group’s future earnings and strengthen its financial position, moving forward,” Lagenda said.

The group intends to fund the acquisition and the future development cost of the land via internally-generated funds, although it will also consider the availability of bank borrowings.

As at June 30, 2020, Lagenda had cash and bank balances of RM1.55 million, while its deposit with licensed banks amounted to RM10.22 million. It had zero borrowings.

Lagenda’s share price closed one sen or 1.07% lower at 92.5 sen yesterday, valuing the group at RM243.73 million. 

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