KUALA LUMPUR (Dec 22): Boustead Holdings Bhd is acquiring a 6.59-acre land in Jalan Cochrane for RM143.5 million, from its major shareholder Lembaga Tabung Angkatan Tentera (LTAT), for a high-rise development.

In a filing with Bursa Malaysia, Boustead said its wholly-owned subsidiary Mutiara Rini Sdn Bhd has entered into a sale and purchase agreement with LTAT — which controls some 58.46% of Boustead — for the acquisition of the freehold land.

The group plans to develop the land into condominiums, car parks and other facilities, with an expected gross development value of RM1.14 billion.

The development is expected to be launched in 2019 and completed within three years, with development costs to be funded through a combination of bank borrowings and internally-generated funds.

Boustead said the land is adjacent to the Cochrane MRT station, while being opposite to MyTOWN shopping centre and IKEA Cheras.

The land is currently leased to MRT Corp Sdn Bhd for use as its site office until September 2020.

Part of the land measuring 0.2 acres will be acquired by the government as part of a compulsory acquisition, in which Mutiara Rini and LTAT have agreed the purchase price will be adjusted accordingly.

Boustead said the purchase price for the Jalan Cochrane land will be entirely funded by proceeds of Boustead’s rights issue exercise, which was completed on June 23, 2016.

The group said the development represents an opportunity for its property division to expand its product offerings at the Jalan Cochrane area, apart from its joint-venture development of the completed MyTOWN, as well as the One Cochrane Residences which is expected to be launched in 2018.

Boustead shares closed unchanged at RM2.90 today, for a market capitalisation of RM5.88 billion.