PETALING JAYA (June 23): Lagenda Properties Bhd (via its wholly-owned subsidiary, LPB Development Sdn Bhd) has entered into a Sale and Purchase Agreement (SPA) with SST Development Sdn Bhd to acquire 500 acres of land in Kuantan, Pahang.
The acquisition came with a cash consideration of RM33 million (approximately RM1.51 per sq ft), according to a media statement by Lagenda today.
The market value of the land stood at RM46 million as at April 2021, as valued by Rahim & Co International Sdn Bhd.
The developer intends to undertake a self-sustainable and affordable township development with the aforementioned land.
It will offer a mix of affordable housing and commercial buildings such as single storey semi-detached, single storey terraced houses and shop offices, in addition to other infrastructure and amenities.
The estimated gross development value (GDV) is at RM1 billion with part of the development expected to commence by 2023 over an estimated period of five years.
The land is about 16km southwest of Kuantan town centre and is accessible via the Gambang-Kuantan Highway. It is situated near Pusat Latihan Kejenteraan Pertanian Kuantan, Jabatan Penjara Penor, Kolej Islam Pahang, and Rumah Kanak-kanak Sultanah Hajjah Kalsom.
“This land acquisition represents part of our continuous efforts to increase presence in more states in Malaysia by identifying viable landbanks to deliver sustainable growth to Lagenda," said Lagenda Properties Bhd managing director Datuk Jimmy Doh (pictured).
"This is consistent with the group’s strategy to acquire landbank in areas with resilient demand for homes at affordable prices of below RM200,000 and is supported by infrastructure improvements in the surrounding area.
"In line with our previous land acquisitions, the cost of this land is circa 3% to 4% of the GDV, which will ensure Lagenda continues to deliver exceptional profit margins ranging between 25% to 30%," added Doh.
The Lagenda Group currently has six ongoing projects with a GDV of approximately RM3.5 billion and has approximately 2,191 acres of vacant landbank. These on-going projects and landbank are predominantly located in Perak.
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