Tambun Indah buys 16 parcels of freehold land in Penang for RM38.9 mil

KUALA LUMPUR (March 16): Property developer Tambun Indah Land Bhd is buying 16 parcels of freehold land in Seberang Perai Tengah, Penang, with a collective land area of 18.8 acres, for RM38.9 million, cash.

In its filing with Bursa Malaysia this evening, Tambun Indah (fundamental: 2.7; valuation: 2.4) said three of its wholly-owned subsidiaries had entered into four sale and purchase agreements for the said acquisition, with Naga Utama Construction Sdn Bhd today.

The subsidiaries are: TID Development Sdn Bhd, Jasnia Sdn Bhd and Intanasia Development Sdn Bhd.

Tambun Indah said these acquisition, which will be funded either via internally-generated funds or bank borrowings, is in line with the group’s strategy to increase its land bank, in order to expand its revenue base.

“In light of the land being close to Bukit Mertajam Town, which is a mature and established residential area, the board opines that the said lands are strategically located, and thus suitable for property development,” Tambun Indah said.

“The location is easily accessible via Jalan Kota Permai, and is of close proximity to Jalan Song Ban Keng. Furthermore, the location is surrounded by amenities such as a hospital, police station, schools, financial institutions, and retail and shopping outlets,” it added.

The group’s board of director is of the view that these acquisitions will contribute positively its financial performance in the future.

Tambun Indah’s share price traded unchanged at RM1.84 today, giving it a market capitalisation of RM775.71 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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