Fajarbaru acquires Australian property developer

PETALING JAYA: Fajarbaru Builder Group Bhd has acquired 49% of Australian property development company Beulah Northcote Land Pty Ltd (BNL) for almost A$3 million (RM8.9 million).
In a filing with Bursa Malaysia, the group said its wholly owned subsidiary Fajarbaru Land (M) Sdn Bhd acquired 98 ordinary shares at A$1 each in BNL, representing 49% of the total issued and paid up share capital in BNL.
The shares were acquired from Beulah Land Holdings Pty Ltd for total A$98 cash. BNL is a wholly owned subsidiary of Beulah Land Holdings Pty Ltd.
Following the acquisition, Fajarbaru Land will also inject capital of A$2.99 million (RM8.89 million) from its own funds.The additional capital to be injected by Fajarbaru Land is to part finance the development which includes land, development and other costs. The acquisition is expected to be completed by April 16.
According to Fajarbaru, the acquisition will provide the group with the opportunity to expand its earnings base generated from the property development and increase its presence in the property market in Melbourne, Australia.
Under a development agreement dated Dec 5, 2017 entered into between BNL and Beulah Northcote Land Trust (BNLT), BNL was granted the development rights for 1.24 acres of freehold land in Melbourne, Australia.
The development comprises at least 15 residential two-storey townhouses along Merri Creek in Northcote, Melbourne. BNLT is the land owner.
Fajarbaru’s share price rose 5.11% or 3.5 sen to close at 72 sen with 247,300 shares traded.