Bolton to acquire land for RM72m

KUALA LUMPUR: Bolton Bhd’s wholly owned subsidiary, Ketapang Realty Sdn Bhd, has entered into a sales and purchase agreement with LP Heights Sdn Bhd to acquire 22.98 acres of leasehold land in Gombak, Selangor for a total cash consideration of RM72 million.

The company said on Tuesday, Aug 10, that the land’s leasehold expires on June 1, 2096 and is presently subject to encumbrances, including without limitation a first registered third party charge over the Land in favour of a financial institution as security for loans granted to Rantau Wawasan Development Sdn Bhd.

It said that Rantau has obtained a Development Order dated Jan 4, 2007 (DO) issued by Majlis Perbandaran Ampang Jaya (MPAJ) for the development of 184 residential units, comprising of 36 units of semi-detached houses, 88 units of terrace houses and 60 units of townvillas. Rantau has started preliminary site works on the land.

Bolton said that Ketapang Realty might seek approval for the layout amendment to build a gated and guarded community comprising of three-storey semi-detached houses and three-storey bungalow houses and that the proposed development is expected to commence upon completion of the acquisition and after obtaining all the approvals from the relevant authorities with an estimated development period of three years.

“The estimated gross development value of approximately RM220 million will generate a gross development profit of approximately RM45 million. The development costs will be financed through internally generated funds and bank borrowings,” it said.

Bolton said that the proposed acquisition is in line with Bolton’s objective to focus on its core business of property development, thereby increasing the Group’s land bank so as to enhance the Group’s future development earnings.

Bolton expects the proposed acquisition to be completed by the 4Q of the financial year ending March 31, 2011.

“The proposed acquisition is to take advantage of the increasing demand for landed properties in Ulu Kelang/Ampang area, which is experiencing good take-up rates and significant price appreciation,” it added.

Bolton said the land -- located in the Ukay Perdana/Ulu Klang area -- is considered to be a suburb of Kuala Lumpur, with the Middle Ring Road 2 (MRR2), Ampang-Kuala Lumpur Elevated Highway (AKLEH) and Duta-Ulu Kelang Expressway (DUKE) linking the area to the city centre and other townships within Klang Valley.

“With its increasing popularity and burgeoning population, there is a good demand for 'gated and guarded' landed properties with good concepts and themes which provides good value,” it added.

Bolton said that although the proposed acquisition would not have any material impact on the earnings and cash flow of Bolton for the financial year ending March 31, 2011, it is expected to enhance the earnings of the group in future years.