Caely Holdings to buy Penang land for RM30.9m

PETALING JAYA: Caely Holdings Bhd’s wholly-owned subsidiary Caely Development Sdn Bhd is planning to buy three parcels of freehold land in Bandar Bukit Mertajam, Penang for RM30.93 million cash to develop a residential and commercial project.
The group told the stock exchange that its unit has entered into a conditional sale and purchase agreement with GTM Property Management Sdn Bhd for the proposed land acquisition.
The purchase consideration is expected to be funded via a combination of internally generated funds and bank borrowings.
Caely said the proposed land acquisition is in line with the group’s overall strategy to acquire land banks for potential development in strategic locations with high development value.
The proposed acquisition also augurs well with the group’s strategy to expand and establish its footprint to other states of Malaysia and would position the group as an upcoming property developer in Penang, it added.
“At this juncture, it is too preliminary to ascertain the exact product mix, total costs to complete the intended project, expected completion date or estimated profits to be derived as the development plan of the land is pending finalisation,” the group said.
Nevertheless, it said given the strategic location of the land and barring any unforeseen circumstances, Caely is confident that based on preliminary market study, the contemplated residential and commercial project, when launched would contribute positively to the earnings of the group.
Barring any unforeseen circumstances, the proposed land acquisition is expected to be completed by the first quarter of 2019.