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Daiman grows landbank through RM33m purchase of firm

KUALA LUMPUR: Johor-based property developer Daiman Development Bhd has acquired 100% stake in Sin Yue Holdings Sdn Bhd, a company that owns 128.8ha of agricultural land in the state, for RM33.1 million cash.

The acquisition is motivated by the group’s plans to increase its landbank in Johor.

In a filing with Bursa Malaysia yesterday, Daiman said the price was arrived at based on the market value of the land held in perpetuity and the audited net assets of Sin Yue as at July 31, 2012 of RM1.19 million and its unaudited net assets as at Dec 24, 2013 of RM1.09 million.

The transaction is equivalent to RM2.39 per sq ft.

Daiman said the purchase would be financed through internally generated funds and bank borrowings. The group does not expect it to have a significant impact on its gearing or the risk profile of its business.

“The acquisition will not have any material effect on the net assets and earnings of  Daiman for the financial year ending June 30, 2014. Barring any unforeseen circumstances, the acquisition is expected to contribute positively to the future earnings of Daiman through the development of the land in the future,” it said.

The group did not state in the filing its development plans for the land.

Daiman has a landbank of 2,000 acres (809ha) in Iskandar Malaysia.

The acquisition is Daiman’s first since it purchased Menara Landmark in Iskandar Malaysia for RM100 million in 2011.

An attempt to buy two parcels measuring 85.85 acres and 93.64 acres in Tebrau, Johor Baru for RM64.46 million last year failed.


This article first appeared in The Edge Financial Daily, on December 31, 2013.

 

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