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KUALA LUMPUR: Tambun Indah Land Bhd, a leading property developer in mainland Penang, is expanding its landbank with the proposed acquisition of a 84.6ha piece of land in Seberang Perai for RM150 million.
Palmington Sdn Bhd (PSB), a wholly-owned subsidiary of Tambun Indah, yesterday acknowledged a letter of acceptance of offer to acquire 27 parcels adjacent to Pearl City, the group’s flagship development in Seberang Perai, Penang.
TPPT Sdn Bhd is the vendor of the land.
In a statement, it said the proposed land acquisition would enlarge the group’s remaining ongoing and undeveloped landbank in Pearl City to 337.6ha from 254ha previously.
Tambun Indah managing director Teh Kiak Seng said the group had been constantly looking out for landbank to expand Pearl City.
“This parcel of land is a good opportunity for us to strengthen our position as a key developer in mainland Penang and to capture the anticipated demand uptrend for affordable homes in light of the opening of the Sultan Abdul Halim Muadzam Shah Bridge [Penang Second Bridge] and upcoming developments in Batu Kawan,” he said.
The sale and purchase agreement for the proposed land acquisition will be executed at a later date between PSB and TPPT.
The transaction is subject to approval from Tambun Indah’s shareholders and is expected to be completed by the fourth quarter ending Dec 31, 2014.
The acquisition will be funded via the group’s internal funds and bank borrowings, according to the statement.
This article first appeared in The Edge Financial Daily, on June 5, 2014.
