Hap Seng Land, a leading Malaysian developer in luxury properties, has announced two new mixed developments in Kuala Selangor that will carry a Gross Development Value (GDV) of RM9.3 billion.
Their unit Euro-Asia Brand Holding Company Sdn Bhd signed two agreements. Proposed acquisition A from Shalimar is valued at RM121.54 million, and proposed acquisition B from Indo Malay at RM107.21 million. The land areas of both projects are 734.82 acres and 714.704 acres respectively.
Shalimar and Indo Malay are subsidiaries of Goodhope Asia Holdings Ltd, which its ultimate parent company is Carson Cumberbatch PLC. Both Shalimar and Indo Malay are owners of agricultural land with oil palm trees.
The proposed acquisitions are expected to be completed by the third quarter of 2016, and is estimated to increase the group’s gross gearing ratio from 0.99 to 1.04.
Proposed acquisition A is to be a gated and guarded development that will comprise of both residential and commercial components. It will carry a GDV of RM5 billion. Proposed acquisition B on the other hand will be a township of affordable homes, which will carry a GDV of RM4.3 billion.
According to Hap Seng Land, “The proposed acquisition is in line with the company’s strategy to strengthen its presence in West Malaysia. In addition, this will provide the company with the opportunity to expand its current land bank in order to sustain its core business as a property developer as well as to enhance its future earnings.”
Diane Foo Eu Lynn, Senior Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories email diane@propertyguru.com.my
