BLand explains acquisition of Sg Besi and Sg Tinggi

KUALA LUMPUR: Berjaya Land Bhd (BLand) has released details of a proposed acquisition in 2004 regarding the acquisition of 244.79 acres of leasehold land in Sg Besi and 750 acres freehold land in Sg Tinggi for RM640 million and RM605 million respectively.

BLand said that the acquisition of the land in Sg Besi includes all existing buildings and structures was proposed by its subsidiary Selat Makmur Sdn Bhd (SMSB) from Selangor Turf Club.

Meanwhile, the proposed acquisition in Sg Tinggi was by SMSB from BerjayaCity Sdn Bhd, as well as the proposed appointment of BerjayaCity as the turnkey contractor to carry out the construction of the New Turf Club.

In a respond to a query from Bursa Malaysia yesterday, BLand said that the proposed acquisition of the leasehold land in Sg Besi worth RM640 million  would be satisfied by a combination of a cash payment of RM35 million, and the transfer of Sg Tinggi land together with a new racecourse, the ancillary buildings to be erected thereon, and the sub-divided vacant lots (known as the New Turf Club) at a value of RM605 million.

“Pursuant thereto, SMSB had also on 19 July 2004 issued a Letter of Offer to BerjayaCity to acquire Sg Tinggi land from BerjayaCity and to appoint BerjayaCity as the turnkey contractor to carry out the construction of the New Turf Club on the Sungai Tinggi Land for a total cash consideration of RM605 million,” it said.

BLand added that relevant authority approval has yet to be obtained to proceed with the proposed acquisition.

“The Company has been vigorously following up with the relevant authorities on the status of its application, the approval of which is crucial before we can proceed with other applications,” it added.