Chin Hin Group Property clarifies tenancy status and funding details for RM685 mil GDV high-rise project

• In a filing with Bursa Malaysia on Friday, CHGP said the land is presently occupied by Nation Drive Wilayah Sdn Bhd, which operates a driving school. However, the vendor is obliged to secure vacant possession before CHGP commences construction.

KUALA LUMPUR (July 18): Chin Hin Group Property Bhd (KL:CHGP) has provided additional information to Bursa Malaysia regarding its proposed acquisition of land for a high-rise development project with an estimated gross development value (GDV) of RM685.1 million.

In a filing with Bursa Malaysia on Friday, CHGP said the land is presently occupied by Nation Drive Wilayah Sdn Bhd, which operates a driving school. However, the vendor is obliged to secure vacant possession before CHGP commences construction.

“The proposed development comprises a high-rise building with approximately 2,434 units of serviced apartments, along with car parks and amenities.

“The project is expected to begin in December 2025 and to be completed by December 2030, with a gross development cost of RM575 million,” it added.

CHGP said the RM52 million purchase price was based on the board’s judgment and estimation of the fair market price of land in the vicinity and the development potential of the land.

The company also clarified that the vendor and Frazel Group Sdn Bhd (FGSB) had previously entered into a sale and purchase agreement on Sept 6, 2023, pursuant to which FGSB had lodged a private caveat on the land.

However, both parties entered into a deed of revocation on April 24, 2024 to revoke the earlier agreement and as part of a settlement, RM24 million of the security deposit will be paid directly to FGSB to facilitate the removal of the caveat.

It is also a term under the SPA that the land shall be sold to the purchaser free from all encumbrances.

CHGP said the project will be funded through a combination of external borrowings, internally-generated funds including proceeds and collection from sales of development units and advances from its wholly-owned subsidiary BKG Development Sdn Bhd, of which the amount shall be determined at a later stage.

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