Gadang to acquire Johor Bahru land from Ekovest for RM75.5 mil

KUALA LUMPUR (March 4): Gadang Holdings Bhd (KL:GADANG) is buying an 11.18-acre parcel of land in Johor Bahru for RM75.48 million from a unit of Ekovest Bhd (KL:EKOVEST).

Gadang aims to develop an RM800 million gross development value (GDV) mixed-development project on the site, according to the construction and property development firm’s bourse filing on Tuesday.

A conditional sale and purchase agreement was inked between Gadang’s unit, City Version Sdn Bhd, and Ekovest’s subsidiary, Tanahmas Kapital Sdn Bhd, for the deal.

The deal is conditional on the Economic Planning Unit’s (EPU) approval of the sale to City Version and Tanahmas Kapital obtaining an amended development order for the mixed project plan by City Version.

The proposed plan includes a first phase of shop offices and a second phase allowing a 1:4 plot ratio for serviced apartments and a car park. The development is expected to be undertaken over seven years, it noted.

The current development order, approved in September 2016, permits 86 shop offices and two blocks of small office home office (Soho) units with a 1:2.10 plot ratio.

Gadang said the land is located along Jalan Tampoi and less than 1km away from its completed development, Jentayu Residensi.

“The site also benefits from excellent accessibility and connectivity via the Pasir Gudang Highway and is located near established commercial amenities, including Angsana Mall, Paragon Market Place, and Central Park Business Boulevard, Johor Bahru,” it added.

The RM75.48 million price-tag is deemed within the acceptable land cost range, Gadang noted, given the potential GDV to be generated from the proposed mixed development and its strategic location.

The land acquisition will be funded by internally generated funds and bank borrowings Gadang said, and is expected to be completed by the fourth quarter of 2026.

Shares in Gadang ended one sen or 4.76% lower at 20 sen, valuing the company at RM156.69 million.

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