KUALA LUMPUR: Kajang-based developer MKH Bhd has acquired a 100% stake in Puncak Alam Resources Sdn Bhd (PARSB) from the family of Tan Sri Rozali Ismail for RM30.6 million.
According to MKH’s announcement to Bursa Malaysia, PARSB holds an exclusive right to develop approximately 550 acres (222.6ha) of land in Ijok, Kuala Selangor, that belongs to TM Facilities Sdn Bhd, a unit of Telekom Malaysia Bhd.
MKH said the development agreement between PARSB and TM Facilities was signed in 2005, followed by a supplemental agreement in 2011. However, it did not elaborate on the status of development on the land or details of the agreement with TM Facilities.
It is worth noting that PARSB’s vendor Rozali is the controlling shareholder of water utilities group Puncak Niaga Holdings Bhd, which has unresolved issues with the Selangor government regarding the water infrastructure in the state.
The acquisition of PARSB is made through MKH’s wholly owned subsidiary Pelangi Seri Alam Development Sdn Bhd, which has already paid the RM30.6 million to the vendor.
“The purchase consideration was arrived at based on the estimated gross development value (GDV) of the land of approximately of RM1 billion,” said MKH, adding that there would be no liabilities assumed by the group arising from the acquisition.
MKH said it planned to develop the land into a new township comprising mixed residential and commercial development with a GDV of RM1 billion over five years.
“The acquisition is in line with the group’s objective to further strengthen its future revenue and earnings from property development and to enhance the group’s presence in Puncak Alam,” it said.
MKH added that the land is located at the northern growth corridor opposite the existing UiTM Puncak Alam campus and is easily accessible via major highways such as the Guthrie Corridor Highway and the New Klang Valley Expressway.
This article first appeared in The Edge Financial Daily, on August 07, 2013.
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