It plans to develop a new township on the land measuring 187.5ha, UEM Land said in a filing to Bursa Malaysia Bhd yesterday.
The company said the proposed acquisition forms part of its strategic plans that include securing at least one new township development outside Nusajaya in Johor by 2015.
This is to enable it to diversify its development portfolio and revenue sources in order to achieve its long-term growth strategy.
UEM Land said the earlier acquisition of land in Cyberjaya in December 2008 as well as the takeover offer for property developer Sunrise Bhd are examples of the strategy.
"Collectively, the move to diversify our development portfolio is also aimed at mitigating the group's market risk and geographical concentration risk," it said.
UEM Land said the Bangi land is a freehold land, strategically located within the growth area of Bandar Baru Bangi where several new townships such as Alam Sari and Bandar Seri Putra are currently being developed.
The proposed acquisition will not have any financial impact on the company's current year ending December 31 2010 as the exercise is only expected to be completed in the next financial year.
UEM Land said it planned to develop the land as a new township as soon as possible once the acquisition is completed by March 31 2011.
Spanning over a 10-year development period, it expects an estimated gross development value of RM2.84 billion.
By Business Times
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