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- The freehold parcel in Daerah Ulu Langat, Selangor, forms part of the group’s larger township development.
KUALA LUMPUR (Dec 5): Gadang Holdings Bhd has entered into a sale and purchase agreement to dispose of a 3.41-hectare parcel of Rumah Selangorku (RSKU) land in Taman Akasia, Semenyih, for RM2.5 million.
The freehold parcel was identified as Geran 339953, Lot 50554, Mukim Semenyih, Daerah Ulu Langat, Selangor.
In a bourse filing on Monday, the agreement was signed between the group’s indirect wholly-owned subsidiary, Crimson Villa Sdn Bhd (CVSB), and Trans Loyal Development Sdn Bhd.
The freehold land, which carries mandatory RSKU development obligations imposed by the Selangor State Government, forms part of Gadang’s broader Taman Akasia township.
Under the approved plans, the site has been earmarked for 605 units of Type E affordable homes. The parcel, currently charged to two financial institutions, was acquired by CVSB in 2015.
Proceeds from the disposal will be channelled towards working capital. The exercise will not affect Gadang’s share capital or gearing, though it will impact earnings for the financial year in which it is completed.
The group said the disposal is expected to be finalised by the fourth quarter of 2026, subject to the fulfilment of all conditions precedent.
Trans Loyal, a private property developer incorporated in 2001, will assume the RSKU obligations upon completion of the transaction.
The disposal price was determined on a willing-buyer, willing-seller basis, guided by an independent valuation by CCO & Associates that reflected regulatory conditions, compliance costs and development requirements.
Under the terms of the SPA, the disposal is conditional upon the purchaser obtaining release letters from the relevant authorities as well as securing an amended development order allowing an increase in density to at least 1,000 RSKU units. These conditions must be met within six months, with an option for an extension.
Gadang expects to record an estimated loss of RM27.7 million from the disposal due to cumulative costs incurred since the land acquisition, including land cost, infrastructure contributions and pre-development expenditure.
The group noted that delays arising from regulatory compliance, changes in RSKU specifications, and the pandemic-induced construction disruptions significantly affected project viability. Rising construction and labour costs, coupled with fixed selling prices for RSKU units, further eroded the feasibility of continuing with the affordable housing component.
The board said the disposal represents a prudent step to stem further losses, avoid additional financing requirements of approximately RM80 million, and support the group’s ability to proceed with more commercially viable phases of the township. The transaction will also relieve CVSB from the RSKU-related regulatory commitments and allow the developer to move ahead with the remaining landed components without restrictions.
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