Teladan Setia expands Jasin land bank for RM117.9m

KUALA LUMPUR (Sept 6): Teladan Setia Group Bhd is acquiring five parcels of leasehold land in Jasin, Melaka measuring a combined 136.92ha for RM117.9 million, cash.

Teladan Setia's wholly-owned Riverwell Resources Sdn Bhd will buy the lands, located in the Ayer Panas Mukim, from Bakat Muhibbah Sdn Bhd.

The lands, Teladan Setia said in a filing today, are situated less than 20km from Jasin Town, and about 20km from Bandar Melaka, and some 60km away from Muar, Johor. In particular, it said the parcels are located between the Tiara Melaka Golf and Country Club and the Orna Golf and Country Club just after the north-east boundary of Central Melaka, with amenities like a hypermarket and a hospital nearby.

The company plans to use the lands for mixed development, although planning is still at the preliminary stage, it added.

The five parcels have a market value of RM118 million based on a valuation letter from CH Williams Talhar & Wong Sdn Bhd dated Aug 9.

The acquisition will be satisfied via bank borrowings (RM94.3 million or 80%) and cash from its initial public offering (IPO) and internally generated funds (RM23.6 million or 20%).

"The close proximity between the company's existing developments and the lands will enable the company to leverage on the market acceptance on its existing development as well as economies of scale, as the company has incurred existing investment in access roads and infrastructure for its existing developments," Teladan Setia said.

ACE Market-listed Teladan Setia has been expanding its land bank since its March 2021 IPO. In April, the company acquired 210ha of land in Jasin from Eramaju Tegas Sdn Bhd for RM95.1 million.

Shares of Teladan Setia settled up half a sen or 0.77% at 65.5 sen today, valuing the property developer at RM527.47 million. The stock has climbed 36.5% from its IPO price of 48 sen.

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