KUALA LUMPUR (Dec 1): Gamuda Bhd has proposed to acquire a 99-year leasehold land measuring 104.1 hectares in Kuala Langat, Selangor, for RM392.17 million cash from Bukit Melati Sdn Bhd. The purchase price works out to roughly RM35 per square feet.

In a filing with Bursa Malaysia today, Gamuda said its wholly-owned subsidiary, Setara Hati Sdn Bhd, had on Dec 1 entered into a sale and purchase agreement (SPA) for the acquisition of the land in Mukim Tanjong Duabelas, Daerah Kuala Langat, Selangor, located just 2 kilometres from the Kota Kemuning township.

The land is currently classified as agricultural land, with a lease tenure of 99 years expiring on Sept 16, 2111.

According to Gamuda, the acquisition will increase its land bank, as well as investment property portfolio, to provide long term earnings growth.

“The land is situated in a matured area of Selangor, with positive prospects for mix property development. The acquisition is expected to contribute positively to the future earnings and thereby improve shareholders’ value, over the medium to long-term,” it said.

The purchase consideration of RM392.17 million was arrived on an “as is where is” basis, and free from all encumbrances and with vacant possession.

Gamuda explained the SPA is conditional upon the conditions precedent, being fulfilled no later than six months from the date of the SPA. However, an automatic extension of six months from the conditional period shall be given, or until the day on which the outcome of the second appeal is received by Setara Hati.

Gamuda also noted the purchase consideration would be entirely satisfied in cash, which would be financed through internally-generated funds and/or bank borrowings.

The acquisition is expected to be completed by the second quarter of next year, it said.

Gamuda counter closed 5.48% or 29 sen lower at RM5 today, giving it a market capitalisation of RM12 billion.