Gadang buys Damansara Perdana land for RM55.7m

PETALING JAYA: Gadang Holdings Bhd is acquiring 2.664 acres of leasehold commercial land in Damansara Perdana for RM55.69 million cash or RM480 per square foot from Gabungan AQRS Bhd.
In a filing with Bursa Malaysia yesterday, it said its indirect wholly-owned subsidiary Gadang Construction Sdn Bhd has entered into a sale and purchase agreement (SPA) with Nusvista Development Sdn Bhd, a wholly-owned subsidiary of Gabungan AQRS for the proposed acquisition.
“The proposed acquisition is for investment purpose. The said land, being strategically and prominently located within Damansara Perdana with good accessibility, is expected to appreciate in value,” said Gadang. The current zoning for the land is commercial, with an allowable plot ratio of 1:4.
Gadang expects to fund the proposed acquisition via internally generated funds and/or bank borrowings. Based on its latest audited consolidated financial statements as at May 31, 2016 and the assumption that 80% of the purchase consideration (RM44.552 million) is financed via bank borrowings, the company’s gearing ratio is expected to increase from 0.42 times to 0.5 times post-acquisition.
Gabungan AQRS said the land sale is a part of the group’s monetisation programme to raise funds for working capital for its construction orderbook worth RM1.7 billion and to repay bank borrowings.