KUALA LUMPUR: Bertam Alliance Bhd is acquiring a 2.75-acre (1.11ha) parcel of land in Taman Luyang in Kota Kinabalu, Sabah for RM41.5 million.
In a filing with Bursa Malaysia yesterday, Bertam said it has entered into a sale and purchase agreement with vendor Damaipuri Property Sdn Bhd to acquire the land, which came with an unexpired lease tenure of 897 years. A 2-storey detached house is presently erected on the land.
According to Bertam, a proposal for the development of an 18-storey apartment block totalling 220 units has been submitted. The estimated total development cost is RM216 million and the expected profit to be derived from the development is RM60 million.
“The proposed development is expected to commence within two months from obtaining the appropriate approvals and the development is expected to take three years to complete,” the company said.
Meanwhile, Bertam intends to fund the land purchase through bank borrowing and internal funds.
It added that the proposed acquisition is in line with the company’s strategy to replenish its land bank to generate long-term sustainable income and viability.
The proposed acquisition is expected to be completed by the end of the year.
This article first appeared in The Edge Financial Daily, on August 14, 2014.
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