Boustead Plantations studying land proposals

PETALING JAYA: Boustead Plantations Bhd is looking at a few acquisition proposals for its land in Sabah and Peninsular Malaysia, including its 11,000 acres close to Pengerang in Johor.
Deputy chairman Tan Sri Lodin Wok Kamaruddin explained that it is studying options on whether to retain some of its land as plantation, for property development, to sell to its sister company or to go into joint venture (JV) with another party to develop the land.
“We’re studying these proposals closely, whether the price and location are in line with our expansion strategy,” he told a press conference after its AGM and EGM yesterday.
Lodin said there are some land which of late has become valuable to be converted into property development, citing land in Kulai, Johor that was disposed last year, as an example.
Shareholders of Boustead Plantations approved the proposed 677.78ha land sale in Malakoff Estate to S P Setia Bhd’s unit Setia Recreation Sdn Bhd for RM620.1 million in its EGM yesterday. The sale leaves it with another 701.22ha.
“We’re looking to sell outright the balance or JV with another property player. It could be our own property company, to take advantage of what Setia is going to do.
“We believe the value of the balance of the land and the prospects will improve as and when the buyer (Setia) starts to develop the property they bought from us,” he added.
Lodin said the Malakoff Estate has become prime land because it is surrounded by other property development projects.
“Keeping it as plantation wouldn’t generate the kind of returns to the group as against the disposal of the land,” he added.
Lodin said Boustead Plantations is always on the lookout for new or existing land to add on to its landbank and will confine its plantation activities within Malaysia.
“The availability of plantation land in Malaysia has become scarce and many go abroad but we’re rather cautious on expanding overseas,” Lodin said, adding that it was because of bad experience and the challenges it faced five years ago.
He said the group is open to greenfield or brownfield acquisition but noted that the latter is its first option.