KUALA LUMPUR: Gamuda Bhd is acquiring 14 parcels of land via open tender from TPPT Sdn Bhd for RM620 million. TPPT is a property developer established by Bank Negara Malaysia in 1990 to manage a special fund with the objective of providing affordable housing.
In a filing with Bursa Malaysia yesterday, Gamuda said the parcels of land measuring 293.1ha are located in Mukim Rawang, in the district of Gombak in Selangor.
The vacant parcels of leasehold land are currently classified as agricultural land, with the expiry of their lease tenures ranging from 2092 to 2095. The land is situated about 11km from Rawang.
The company said the total consideration for the land will be satisfied entirely in cash, via a mix of bank borrowings and internally generated funds. The acquisition is expected to be completed by the third quarter of this year.
Gamuda also said the acquisition will enable the company to increase its landbank to further establish itself in the property development sector, and increase its investment property portfolio to provide long-term earnings growth.
“The land is situated in a mature area of Selangor with positive prospects for mixed property development. The proposed acquisition is expected to contribute positively to future earnings, and thereby improve shareholders’ value over the medium to long term,” it said.
In the same filing, Gamuda said the land would be developed into an integrated township comprising residential and commercial properties.
“The management of Gamuda is confident of the prospects of the land, and is optimistic that the future development on the land will contribute positively to the earnings of the Gamuda group in the near future.”
The proposed project should generate a gross development value of approximately RM5 billion over a sales period of 16 years.
A new interchange is currently under construction, linking the land directly to the Rawang south interchange of the North-South Expressway.
The interchange is fully funded by TPPT. Construction started in August 2012 and is expected to be completed by August 2014.
Gamuda said the Selayang Municipal Council plans to introduce a bus rapid transit service, departing from Kota Puteri and stopping at Kuang KTM station.
This article first appeared in The Edge Financial Daily, on June 14, 2013.