Bina Darulaman to build mixed development in Kedah at RM73m

KUALA LUMPUR (Dec 15): Bina Darulaman Bhd (BDB) plans to develop a 46.82ha piece of land in Bandar Pokok Sena, Kedah into a mixed development at a cost of RM73 million.

BDB expects to derive a profit of RM14.5 million from the proposed development, which will comprise 255 units of two-storey terrace house and 40 units of two-storey shop offices, to be known as Phase 2.

In a filing with Bursa Malaysia today, BDB said the proposed development will be funded via a combination of bank borrowings, progressive sales billings and internal funds, the proportion of which has yet to be determined.

"The future prospect of the planned development is favourable, as it is located at a prime and stable area, which is near to Pokok Sena town. The land can be accessed from Alor Setar city centre via main road of Jalan Langgar-Pokok Sena," it noted.

BDB said its wholly-owned subsidiary Kedah Holdings Sdn Bhd (KHSB) today signed a sale and purchase agreement with PKNK's construction arm KTPC Construction Sdn Bhd to acquire the piece of land for RM8.69 million or RM5.50 per sq ft, together with the infrastructure erected thereon, and the development rights to the land. The infrastructure includes water tank, sewerage treatment plant, main sewer line, main waterpipe and main road.

"The original cost of investment to PKNK as the registered proprietor, in several parcels of land in Pokok Sena, including the land, was RM5.12 million on Nov 11, 1998," it added.

BDB said the proposed acquisition will provide immediate settlement for the debt owed by KTPC Construction to KHSB, amounting to RMRM4.64 million; as well as provide KHSB an opportunity to optimise its expertise as a property developer and generate profit from the development of the land.

It added that the proposed acquisition is expected to be completed within three months, unless extended by the mutual agreement of both parties.

BDB shares closed unchanged at 69 sen today, bringing it's market capitalisation to RM209.7 million. -- theedgemarkets.com

Interested in investing in properties in Kedah after reading this article? Click here.