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Singapore’s ‘popiah king’ acquires prime land in KL

SINGAPORE: Singapore-listed GSH Corp Ltd, which is majority owned by Singapore’s “popiah king” Sam Gooi, is acquiring a 2,431 sq ft tract of prime land in Jalan Kia Peng, Kuala Lumpur, for RM132.4 million or RM2,121 per sq ft.

The sale and purchase agreement was signed last Friday between GSH’s wholly-owned subsidiary City View Ventures Sdn Bhd and vendor Tropicana Kia Peng Sdn Bhd, a unit of Tropicana Corp Bhd.

According to a statement from GSH, the company plans to develop the land into a high-end residential and commercial development, riding on its strategic location which is 800m from the Petronas Twin Towers and Suria KLCC.

The acquisition comes hot on the heels of the unanimous approval by GSH’s shareholders at an extraordinary general meeting (EGM) on Oct 9, 2013, to extend the company’s diversification into property development and related businesses to Asean countries.

“We are thankful to our shareholders for entrusting us to develop the group’s property development business, and are pleased to announce this acquisition so soon after the EGM. We assure all of our shareholders that we are working very hard to expand into mainland China, Malaysia, and the Asean region,” said Gooi, who is GSH’s non-executive chairman in the press statement.

“We like Malaysia, particularly Kuala Lumpur, for its strong domestic demand and robust economic fundamentals, that drive population migration into urban areas, and which continues to fuel growth in the mid-tier to luxury segment of the residential market,” said GSH chief executive officer Gilbert Ee.

Ee said Kuala Lumpur is perceived as a steady, safe property market, and coupled with the excellent location of the site, GSH is optimistic that its plans for a premium residential development at Jalan Kia Peng will be attractive to discerning local and overseas buyers.

The purchase consideration was arrived at a willing-buyer, willing-seller basis, and funding will be from internal resources and borrowings.

A deposit of 10% of the purchase price has been paid by City View to the vendor. The balance shall be paid upon completion of the acquisition, to take place within three months from the date the agreement becomes unconditional.

The proposed acquisition is subject to the fulfilment of conditions precedent, such as the approval of the relevant state authority for the transfer of the property by the vendor to City View.


This article first appeared in The Edge Financial Daily, on December 5, 2013.

 

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