GuocoLand buys Cheras land for RM108m

KUALA LUMPUR (Dec 7): GuocoLand (M) Bhd is buying nine land parcels measuring 18.9ha in Cheras for RM107.87 million or RM53 per square foot (psf) to be satisfied via cash.

In a filing with Bursa Malaysia on Tuesday, the property developer said its wholly-owned subsidiary Ace Acres Sdn Bhd (AASB) had entered into a conditional sale and purchase agreement (SPA) with Bonds Corp Sdn Bhd (BCSB) to purchase the nine freehold land parcels.

The proposed development of the said land will comprise a mixture of bungalows, semi-detached houses, superlink houses, condominiums and shophouses, it said.

However, it did not provide any further information on the project as the development proposal is currently at the initial planning stage.

GuocoLand said the land is currently occupied by squatters. The developer added that the purchase would be funded entirely by borrowings and its gearing is expected to increase to 1.34 times from 1.13 times as at June 30.

In addition to the SPA, AASB and BCSB also signed an agreement where AASB would get the first priority within the next 12 months to acquire an adjacent 2ha plot from BCSB for RM53 psf.

The 18.9ha site is located 10km south of the city centre, and is sandwiched between Alam Damai and Bandar Damai Perdana townships.

The proposed acquisition is subject to approval by the Prime Minister Department's Economic Planning Unit.

GuocoLand closed unchanged at 83.5 sen with 121,800 shares traded.