Glomac buys 200 acres of land in Puchong

KUALA LUMPUR: Glomac Bhd is acquiring 200 acres of leasehold land in Bandar Metro Puchong in Puchong, Selangor for RM77 million.

Its unit Glomac Alliance Sdn Bhd had entered into a sale and purchase agreement with Score Option Sdn Bhd, the registered proprietor of the land, acting through the receivers and managers — Duar Tuan Kiat and Adam Primus Varghese Abdullah of Ernst & Young — for the acquisition of the land, the developer said in a filing to Bursa Malaysia on Monday, Jan 24.

"The acquisition is in line with Glomac's core strategy of acquiring suitable development landbank within the Klang Valley with strong potential for prime and sizable new developments. The land is strategic as it is relatively sizeable and hence ideal for a wider mix of products, and is in close proximity to Puchong's established commercial hub where IOI Mall and Tesco are located," it noted.

In January 2003, Glomac Alliance and Score Option had entered into a joint venture for the development of 90 acres which forms a portion of the land. Glomac launched the maiden phase of this development known as Lakeside Residences in 2005 and has since successfully completed and handed over the properties to purchasers.

However, disputes had arisen between Glomac Alliance and the Score Option thereafter, which are currently the subject matter of a legal suit in the Kuala Lumpur High Court and the development of subsequent phases was put on hold.

The land was then charged to Malayan Banking Bhd (Maybank), and is secured inter alia by two debentures both dated April 10, 2008 and a memorandum of charge over the land made between Maybank and Score Option.

On May 30, 2008, the Court had granted an injunction in favour of Glomac Alliance. Both parties have agreed to undertake with one another that they will use their respective best endeavours to seek an adjournment of the case before the high court. Maybank subsequently acted as the debenture holder appointed Receiver and Manager of Score Option on Jan 29, 2010.

The existing legal suit will be withdrawn within fourteen days from the completion date of this acquisition.

The purchase of the land excludes the sold units to Austral Development Sdn Bhd (receivers and managers appointed), vacant lots and residential units sold by Austral Development as well as units sold by the previous proprietor Serangkai Emas Sdn Bhd.

The proposed acquisition, the company said, will now allow Glomac to take full control of the 90 acres under the earlier joint venture agreement, and further extend its landbank in the same location to 200 acres, to further capitalise on the proven success of Phase 1 of Lakeside Residences.

The land is located in Puchong and is about 900 metres off the right side of Jalan Puchong traveling towards Putrajaya/Cyberjaya from Jalan Kelang Lama and is close to established developed areas such as the Pusat Bandar Puchong and Taman Perindustrian Puchong.