New land acquisition by Glomac is part of key strategy

KUALA LUMPUR (June 5): Hong Leong Investment Bank Research has described the land acquisition by Glomac Bhd as a continuation of its key strategy to acquire sizeable tracts of land in the outskirts of Klang Valley.

The company acquired 77.59 hectares of agricultural land in Dengkil, Selangor, from Lee Chin Cheng Dengkil Oil Palm Plantations Sdn Bhd for RM66.589 million.

The research house said the land's exact mix and gross development value was yet to be determined but it expected Glomac to roll out affordable housing projects.

"However we do not expect any launches before 2014 due to Glomac's ample land bank in Puchong and Kuala Selangor.

"And, the low acquisition price of only RM8 per square feet removes the urgency for a quick turnaround launch," it added.

Following the land acquisition, the research firm maintained a "hold" call on Glomac Bhd with an unchanged target price of 87 sen. — Bernama

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