Avaland’s RM86m Taman U-Thant land deal turns unconditional

PETALING JAYA (Sept 2): Avaland Bhd’s proposed RM86.04 million acquisition of three adjoining freehold land parcels in Taman U-Thant, Kuala Lumpur, has become unconditional.

In a Bursa Malaysia filing on Wednesday (Sept 2), the property developer said its indirect wholly owned subsidiary Nexus Advertising Sdn Bhd (NASB) had received confirmation from its solicitors that all conditions precedent under the sale and purchase agreement (SPA) had been fulfilled, with the SPA becoming unconditional on the same day.

NASB signed the conditional SPA with Tong Ah Company Sdn Bhd on April 28 to acquire the three parcels, measuring 7,612.63 sq m, or about 1.88 acres, in aggregate.

RM700m preliminary GDV

The land, comprising Lots 79, 80 and 81 in Section 89A, is currently zoned for residential use. Avaland had said it planned to undertake a high-rise residential development on the site, with a preliminary estimated gross development value (GDV) of about RM700 million.

The group said in April that it was still in the initial stages of development planning, and that development costs, funding, timeline and expected profit margins had yet to be determined pending the submission and approval of detailed development plans.

The RM86.04 million purchase price was arrived at on a willing-buyer, willing-seller basis following arm’s-length negotiations. CBRE WTW Valuation & Advisory Sdn Bhd valued the land at RM88 million as at March 26 using the comparison approach.

Avaland had said the acquisition would strengthen its presence in the Klang Valley and expand its footprint in the luxury residential segment, following its Aetas Damansara and Aetas Seputeh developments.

The site is located about 2km from Kuala Lumpur City Centre and is accessible via Jalan Ampang, Jalan Tun Razak and the Ampang-Kuala Lumpur Elevated Highway (AKLEH).

RM77.44m balance consideration

Under the SPA terms disclosed in April, the purchase consideration is to be settled entirely in cash. The balance purchase consideration of RM77.44 million is payable within three months from the unconditional date, with a further 30-day extension available subject to interest of 8% per annum.

Avaland had said it intended to fund the acquisition through a combination of internally generated funds and bank borrowings, with the final funding mix to be determined later.

The April announcement said the acquisition was expected to be completed by the first quarter of 2027, barring unforeseen circumstances.

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