Gamuda’s unit to buy Kuala Langat land for RM392m

PETALING JAYA: Gamuda Bhd's wholly-owned subsidiary Setara Hati Sdn Bhd has entered into a sale and purchase agreement (SPA) with Bukit Melati Sdn Bhd for the acquisition of a 104.1ha leasehold land in Mukim Tanjong Duabelas, Kuala Langat, Selangor for RM392.17 million cash.
The purchase consideration will be entirely satisfied in cash, which will be financed via internally generated funds and/or bank borrowings.
"The acquisition enables Gamuda to increase its land bank to further establish its position in property development and increasing its investment property portfolio to provide long term earnings growth. The land is situated in a matured area of Selangor with positive prospects for mix property development. The acquisition is expected to contribute positively to the future earnings and thereby improve shareholders' value over the medium to long-term," Gamuda said in a filing with Bursa Malaysia yesterday.
The land is envisaged to be developed into an exclusive signature address, catering to investors/end users residing within a 10km radius, especially in matured neighbourhoods such as Kota Kemuning, Bukit Rimau, Puchong, Subang and Shah Alam.
Gamuda said the land will serve as an extension to Kota Kemuning, by introducing intimate clusters of homes providing privacy and character creating an unmatched value and investment gain with an advantage of having a ready stream of buyers from Kota Kemuning, Shah Alam, Subang and Klang.