The company is considering 70% bank borrowings and 30% internally generated funds to finance the proposed acquisition, the group said in a Bursa Malaysia filing.
“The proposed acquisition represents a strategic purchase in line with its strategy to expand its land bank in locations with growth potential and strengthen its foothold in the property market in Penang.”
The proposed development plan is affordable sea-fronting service apartments with sizes ranging from 485 sq ft to 1,200 sq ft complete with amenities and facilities, aimed at first-time home buyers, working professionals, young families and investors.
Following the completion of the proposed acquisition, the land bank and joint venture development rights of Ivory Group will increase to approximately 86 acres from 84 acres. Its gearing level is also expected to increase to 0.42 times for the financial year ending Dec 31, 2020.
