KUALA LUMPUR (Aug 3): Takaso Resources Bhd said its joint venture (JV) with Makok International Sdn Bhd (MISB) to develop a 1,492.23 sq m piece of land in Kuala Lumpur would see it forking out RM94.49 million.
In a reply to a Bursa Malaysia query today, Takaso said the cost is, however, subject to changes upon Masbe Coffee Sdn Bhd (MCSB) obtaining all necessary approvals for development of the land such as layout plan approval and building plan and specifications approval by the appropriate authority.
Takaso said it intends to finance the development cost through fund raising exercise, internal funds and bank borrowings, which has not been finalised at this juncture.
Last week, Takaso had announced that it had accepted a conditional offer letter from MISB to acquire a 51% stake in MCSB for RM5 million.
MISB and MCSB has entered into a JV agreement on Dec 29, 2014 to develop the freehold land into a residential, commercial or mixed development project.
After the acquisition, Takaso will appoint its officers as new directors to replace MCSB’s existing directors, and assume all control and management of MCSB and the development project.
MCSB has obtained the principal development order (DO) for the land on April 10, 2015.
Takaso said other than the said DO, no other approval has been obtained from other relevant authorities.
In response to the local exchange, Takaso added that based on the DO, the approved type of development was to develop one block of serviced apartments that consist of 145 units on the land.
Nonetheless, Takaso said MCSB may apply for a revision of the DO upon finalisation of a new JV agreement with MISB.
The new JV agreement will only be finalised within 30 days upon the acceptance of the letter of offer by MISB.
“As the development project is at an initial conceptual planning stage and is not finalised at this juncture, any changes and updates in regard to the new JV agreement will be announced by Takaso once the new JV agreement is signed,” Takaso said.
Takaso also mentioned that the development project is expected to commence within one year from the execution date of new JV agreement, and the expected completion will be within three years from the commencement date.
Meanwhile, Takaso noted that there was no valuation carried out on the land by independent valuer.
“However, the assessment of the market value in respect of the land was carried out internally by project team by reference to iproperty website on similar land located nearby. Per the aforesaid website, a piece of similar freehold land located at Lorong Yap Kwan Seng in Kuala Lumpur is currently worth about RM2,800 per sq ft,” the group said.
Based on that reference, the market value of the land measuring 16,062.22 sq ft, is about RM45 million.
Takaso (fundamental: 1.65; valuation: 0) shares fell half sen or 0.89% to close at 55.5 sen today, giving it a market capitalisation of RM114.41 million.
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