KUALA LUMPUR: Hua Yang Bhd is on track to begin construction of a high-rise mixed-development project in Selayang with a gross development value (GDV) of RM800 million after shareholders approved its proposed acquisition of a piece of land measuring 8.09 acres (3.27ha) in Selayang.

The land will be purchased entirely by cash amounting to RM120 million, which will be raised through internally-generated funds or from the Sukuk Murabahah programme or a combination of both. The resolution was passed at the group’s extraordinary general meeting (EGM) yesterday.

In a statement following the EGM, Hua Yang chief executive officer Ho Wen Yan said the shareholders’ approval marks an important milestone that puts the group a step closer towards realising its plans for the land located along the major Middle Ring Road 2 (MRR2).

“We intend to cater to the growing demand for affordable homes, especially from the younger market and middle-income segment. To achieve this, we will be building vertical communities that are appealing to contemporary urban lifestyles in an area that offers unparalleled access to major highways and roads as well as to modern amenities,” he said.

Development of the project is expected to begin in the fourth quarter of 2016, with a targeted completion of between five and seven years. The development will comprise four blocks of serviced apartments with 1,264 units, club facilities with a multistorey car park, and two levels of retail commercial area consisting of 154 units of retail outlets.

Hua Yang (fundamental: 1.7; valuation: 2.4) closed unchanged at RM2.06, with a market capitalisation of RM546.48 million.

This article first appeared in The Edge Financial Daily, on June 3, 2015.