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Dijaya Development buys property on Jalan Ampang

KUALA LUMPUR: Dijaya Corp Bhd announced on Nov 25 that its subsidiary Dijaya Development Sdn Bhd had on Nov 24 entered into a Sales and Purchase Agreement with Mercury Property Management Sdn Bhd for a plot of vacant freehold commercial land on Jalan Ampang.

The property measures approximately 55,929 sq ft and was sold for a cash consideration of over RM123 million. It is situated within walking distance of the Petronas Twin Towers and is bounded to the west by Bangunan Angkasa Raya and Wisma BSN to its east.

Dijaya Corp acquired the land to enter the high-end property market in the KLCC area. Considering how land is scarce within this in-demand area, the purchase is in line with the holding company’s business strategy of increasing landbank by seeking and acquiring suitable development land in strategic locations.

The company will pay for the land with a combination of bank borrowings and internally generated funds.

Subject to approval by relevant authorities and based on prevailing market conditions, Dijaya Development intends to develop an integrated commercial development with an international hotel, serviced suites and/or offices.

The property was originally acquired by Mercury Property Management for over RM102.9 million from Chua Yong Man and Others, and trustees for the estate of Chua Cheng Bok.

The purchase will not have any effect on the issued and paid-up share capital and substantial shareholders’ shareholding of Dijaya Corp as it does not involve insurance of shares in the holding company.

Furthermore, it is not expected to have immediate material effect on net assets, net assets per share, gearing, earnings and earnings per share of the group for the year ending Dec 31, 2009.

Barring any unforeseen circumstances the development of the newly acquired property will contribute positively to the future earnings of the group.
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