SDB buys Cheras land for RM300m condo project

KUALA LUMPUR: Property developer Selangor Dredging Bhd (SDB) is planning to build 540 condominium units with a gross development value of RM300 million in Cheras South.

In a filing with Bursa Malaysia on Tuesday, Apr 26, SDB said its wholly-owned subsidiary SDB Properties Sdn Bhd had entered into a sale and purchase agreement (SPA) with Webcon Sdn Bhd for the acquisition of a piece of land in Hulu Langat, Selangor, for a consideration of RM31 million.

SDB said Webcon had earlier obtained a development order and building plan approval to develop 540 condominium units on the freehold land measuring 36,339 sq ft.

"The said property has development potential and is part of the Selangor Dredging group's ongoing identification of suitable properties to add to the group's landbank," said the company.

SDB said the land is strategically located in the centre of the Cheras South communities and conveniently surrounded by amenities such as Jusco Cheras Selatan Shopping Centre, Carrefour Hypermarket and Columbia Asia Hospital.

"It also has easy access to a few major highways (Cheras Kajang Expressway, SILK Highway and Sungai Besi Expressway) and secondary roads, placing it in a very strategic location," SDB added.

Earlier, Webcon and Syarikat Perumahan Negara Bhd (SPNB) had entered into a development agreement for the sale and development of the land.

However, Webcon's agreements with SPNB were terminated on March 9 this year and the SPA was conditional upon the land being free from encumbrances of Webcon's agreement with SPNB, SDB said.

The company intends to finance the purchase and development of the Hulu Langat land via internally generated funds and bank borrowings, the combination of which will be determined at a later date.

SDB Properties shall pay a deposit of RM3.1 million and settle the balance of RM27.9 million within three months of the SPA's date, failing which Webcon shall grant an automatic one-month extension and impose an interest of 8% per annum.

The land is currently charged to Affin Bank Bhd as security for a banking facility granted to Webcon.

In its 2010 annual report, SDB said it had completed two development projects, namely 20trees in Melawati and Ameera in SS2, Petaling Jaya, Selangor, while its maiden Singapore development, a 22-unit low density residential area, is on track for year-end completion.