PROPERTY developer Land & General Bhd (L&G), via its unit Bright Term Sdn Bhd (BTSB), is acquiring 10 parcels of land from Seremban Gold Resort Bhd for RM25 million in cash.
L&G said the properties would provide an opportunity for the group to expand and complement its existing business of residential and commercial property development, said the company in a filing to Bursa Malaysia today.
"It will also serve as an opportunity for the group to venture and penetrate into the development activities in the vicinity of Senawang and Seremban in Negri Sembilan," it said.
The 10 parcels of land comes with a 27-hole golf course with a club house and other supporting facilities, five parcels of vacant residential development land, forty-four parcels of vacant bungalow plots, a single-storey bungalow house and a parcel of industrial plot designated for Tenaga Nasional Bhd sub-station located within the Tuanku Jaafar Golf and Country Resort.
The group intends to develop the properties into an upscale high-quality residential development with a modern tropical concept which would include bungalow lots, double-storey cluster semi-detached houses, link cluster houses and apartments.
The estimated gross development value of the proposed development is RM555 million with an estimated gross development cost of RM419.54 million and estimated gross development profit of RM135.52 million.
The proposed development will be financed through internally generated funds and borrowings.
The group is finalising the master plan for the proposed development, construction on which is expected to commence in 2011/2012, and is scheduled to be completed in 2018.
L&G said the proposed development was expected to enhance its future revenue stream which in turn was anticipated to contribute positively to the group's financial performance in the future.
"The board is of the view that the proposed acquisition provides an excellent and timely opportunity for the efficient deployment of the group's surplus financial resources in order to achieve a better return for shareholders in the long-term," said the company.
By Bernama
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