OSK Property to buy Cyberjaya land for RM87m

KUALA LUMPUR: OSK Property Holdings Bhd's wholly-owned subsidiary Wawasan Rajawali Sdn Bhd is buying a 64,320 sq metre freehold site in Mukim Dengkil, Selangor, from Cyberview Sdn Bhd and Setia Haruman Sdn Bhd for RM86.54 million.

The proposed acquisition will enable the property development and management firm to increase its existing property development land bank and strengthen its presence in Cyberjaya and enable it to offer a wider range of products than its existing high-end condominium and lake villa development in Perdana Lakeview, known as Mirage by the Lake, according to an exchange filing.

"The board believes that the land in Cyberjaya offers good potential due to its unique demographics," OSK Property said in the announcement, adding that the proposed acquisition will be funded by internal funds (20%) and bank borrowings (80%) based on preliminary discussions.

Based on OSK Property's audited consolidated financial statements as at Dec 31, 2010, its gearing stood at 0.34 times. The company's pro forma gearing position will be 0.56 times after the acquisition, with the assumption that RM69.2 million, or 80%, of the purchase price is funded via external borrowings.

The proposed acquisition is expected to be completed by the third quarter of this year barring unforeseen circumstances, according to OSK Property. The company's stock ended 2.5 sen lower on Tuesday, Mar 22 at 70 sen.