KHSB to acquire land in Section 14,PJ

KUALA LUMPUR: Kumpulan Hartanah Selangor Berhad (KHSB) on Wednesday, Aug 11, aims to acquire 38,850 sq m of land in Section 14, Petaling Jaya from Majlis Agama Islam Selangor (MAIS) for a total cash consideration of RM61.7 million

The land comprises of two parcels of commercial land that is under a leasehold status until April 7, 2103, and the category of land use is for commercial buildings.

The company said that the purchase of the land would be funded via borrowings and internally generated funds.

“KHSB, being a property developer, intends to develop the Land for commercial building purposes with development of service apartment, shop offices and shopping complexes in mind,” it said, adding that the proposed acquisition is expected to be completed by Sept 2010.

KHSB said that the purchase consideration was arrived at on a “willing-buyer willing-seller basis” after taking into consideration, amongst other factors, the market value of the land, which represents a discount of approximately 5.05% from the valuation accorded by the valuers.

KHSB said that the proposed acquisition is a continuing effort by KHSB to reposition itself “as developer of choice as the land acquired is a prime development land in the heart of Petaling Jaya”, adding that the proposed acquisition would prepare the group for immediate development with the launch of the development project that is expected to take place in 2011.

“The present strong economy, coupled with a very conducive building environment, high financial liquidity and demand augurs well for the development and sales plan by the Company,” it said, adding that given the improving economic sentiment and the location of the proposed acquisition, the take-up rate is expected to be strong and contribute positively to the KHSB’s revenue in the future.

KHSB said that the proposed acquisition is not expected to have any material effect on the earnings of the group for the financial year ending Dec 31, 2010.