LSH Capital receives RM197.9m land offer from RAC for 17.4-acre Country Heights site in Petaling district

PETALING JAYA (May 16): Lim Seong Hai Capital Bhd (LSH Capital) has received a letter of offer from Perbadanan Aset Keretapi (RAC) for the proposed purchase and development of two parcels of land measuring approximately 17.4 acres in Mukim Pekan Country Height, Daerah Petaling, Selangor, at an offered price of RM197.9 million. 

According to a Bursa Malaysia filing yesterday, the offer follows a request for proposal (RFP) that LSH Capital had itself initiated, suggesting the Petaling Jaya-based building materials and property group actively sought out the site rather than responding to an open tender.

RAC and what the land represents

Perbadanan Aset Keretapi is the railway asset corporation under the Ministry of Transport, tasked with managing and monetising land assets associated with the national rail network. Its landbank tends to be strategically located near rail corridors or former rail-adjacent areas. 

The Country Heights pocket in Daerah Petaling is a mixed residential-commercial address with proximity to established infrastructure.

The two parcels are held under separate titles but are being offered as a combined 17.4-acre package for integrated development. LSH Capital has not yet disclosed its intended development concept or the project's gross development value.

Timeline and conditions

LSH Capital must execute a formal sale and development agreement within 30 days of accepting the letter of offer. Once the agreement is signed, the company has six months to secure:

(a) Shareholder approval at an Extraordinary General Meeting (EGM)
(b) Approval from the Ministry of Economy, including any conditions imposed
(c) Any other approvals from governmental bodies, statutory authorities, or local councils as required

RAC retains the right to terminate the letter of offer if the agreement is not signed within 30 days, or if material misrepresentation is found during or after the RFP process. 

Notably, LSH Capital has no recourse to claim compensation, costs or any form of recoupment from RAC should the offer be cancelled.

Regulatory and approval timelines 

LSH Capital is expected to convene an EGM within the six-month window post-signing, at which point the full development concept, GDV, and financing details would typically be disclosed in the circular to shareholders. 

Further details on the proposed development will be announced once the formal agreement is executed, the company said.

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