Avaland buys 3.2-acre KL land from Tan Chong for RM148m

• This marks the second land acquisition involving Avaland and Tan Chong Group this month.

KUALA LUMPUR (July 10): Avaland Bhd (KL:AVALAND) has signed a deal to acquire a 3.194-acre parcel of land on Jalan Putra here from a unit of Tan Chong Motor Holdings Bhd (KL:TCHONG) for RM148.8 million, which it plans to develop into a mixed-use commercial project.

This marks the second land acquisition involving Avaland and Tan Chong Group this month.

The land, located 100 metres from the PWTC LRT station and 550 metres from the Chow Kit Monorail station, is "strategically located within an established neighbourhood" surrounded by landmarks such as the Sunway Putra Mall, World Trade Centre Kuala Lumpur and the Chow Kit Road Market, Avaland said in a statement.

Avaland intends to develop a mixed-use commercial project on the site, with an estimated gross development value (GDV) of approximately RM900 million.

In a bourse filing, the property developer said its indirect wholly-owned unit, Solid Interest Sdn Bhd, had entered into a conditional sale and purchase agreement with Tanahku Holdings Sdn Bhd for the proposed acquisition.

Tanahku Holdings is a wholly-owned subsidiary of Tan Chong Motor.

“This acquisition aligns with our long-term strategic objective to strengthen and expand our footprint within the Klang Valley,” said Avaland chief executive officer Apollo Bello Tanco in a separate statement.

The acquisition also provides the company with an opportunity to introduce investment-focused product offerings in a prime urban location, he said.

Earlier on July 1, Avaland announced plans to acquire a 2.17-acre plot in Section 13, Petaling Jaya, from Comit Communication Technologies (M) Sdn Bhd—24.5%-owned by Tan Chong—for RM49 million. The site is earmarked for a RM320 million high-rise commercial development.

Combined, both land acquisitions are expected to contribute a GDV of over RM1.2 billion, which Avaland said would meaningfully support the next phase of the company’s earnings growth.

“We remain focused on actively securing strategic landbanking opportunities within key growth centres across the Klang Valley to drive sustainable growth,” Apollo said.

Avaland said it intends to fund the latest acquisition through a combination of internally generated funds and bank borrowings. The deal is expected to be completed by the first quarter of 2026.

In a separate filing, Tan Chong said the proposed disposal is expected to generate a gain of RM14.7 million.

The net proceeds will be used to support working capital and invest in opportunities aligned with the group's long-term objectives, it said.

Until fully utilised, the funds will be placed in deposits or short-term money market instruments, with any interest or gain used for working capital.

Shares in Avaland rose half a sen or 1.7% to 29.5 sen on Thursday, giving the group a market capitalisation of RM429.8 million.

Tan Chong’s shares, meanwhile, closed 3.5 sen or 6.7% higher at 55.5 sen, valuing the automotive assembler and distributor at RM373 million.

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