KUALA LUMPUR (Feb 8): Chin Hin Group Property Bhd (CHGP) today announced its plan to spend RM268 million to acquire 81.9 acres of land in the Klang Valley to develop five different property projects, and aims to launch projects worth RM3.73 billion in gross development value in the next two years.

"We intend to expand our portfolio of developments to various growth corridors in the Klang Valley such as Serendah, Bandar Kinrara, Bangsar South and Cyberjaya," said its executive director Chiau Haw Choon in a statement.

The types of developments proposed include townships, service apartments, mixed-use and offices.

“With the increasing prospect of effective Covid-19 vaccination this year, there is optimism that the property market will see a turning point soon. On top of that, historic low interest rates and various homeownership incentives will certainly bring some vibrancy to the market.

"As a developer, this is a good time for us to seize opportunities with the currently attractive land prices and expand our landbank at strategic locations. This will ensure that the Group has a clear and sustainable growth plan ahead. We are targeting to launch these properties in 1- to 2 years’ time, in line with the expected recovery of the property market,” said Chiau.

The group also announced the acquisition of an 11.53 acre plot in Cyberjaya for RM50.22 million, as part of its bid to replenish its landbank.

“Estimated to generate RM1.1 billion in GDV, CHGP has proposed to construct a mixed-development on this freehold land that is currently vacant... The proposed acquisition to build up the land bank and property development pipeline of CHGP is expected to contribute positively to the group in the next five years and improve its earnings visibility,” Chiau said.

CHGP's wholly-owned Boon Koon Capital Sdn Bhd inked the sale and purchase agreement for the acquisition with SMD Real Estate Sdn Bhd, which is indirectly owned by businessman Datuk Hoe Tze Fook. The acquisition is expected to be completed by the second quarter of 2021.

CHGP shares today climbed 21.62% or 16 sen to close at 90 sen, giving the group a market capitalisation of RM311.46 million.