KUALA LUMPUR (Dec 15): Berjaya Land Bhd (BLand) is buying freehold land in Bentong, Pahang from Tan Sri Vincent Tan and his family for RM38.45 million, or RM10 per square foot, in cash.

In a filing with Bursa Malaysia, BLand said its wholly owned subsidiary Berjaya Engineering Construction Sdn Bhd on Dec 14 entered into a sale and purchase agreement with Deru Klasik Sdn Bhd for the land acquisition.

Berjaya boss Tan is the controlling shareholder of Deru Klasik with a 75% stake, according to the filing.

The present directors of Deru Klasik are Chryseis Tan Sheik Ling, Hew Chee Wai and Tan Choon Lui. Chryseis, daughter of Vincent, owns a 5% stake in Deru Klasik. She is also an executive director and a shareholder of BLand.

Furthermore, the filing revealed that Nerine Tan Sheik Ping, daughter of Vicent and sister of Chryseis, is an executive director and a shareholder of BLand as well.

Choon Lui is sister of Vicent and aunt of Chryseis and Nerine. She is also a shareholder of BLand.

BLand said Chryseis and Nerine, being interested directors of BLand, have abstained from all board deliberations and voting in relation to the land acquisition.

The proposed acquisition is not subject to the approval of shareholders of BLand or any regulatory authority.

BLand said Deru Klasik shall undertake to ensure that the land will be converted and approved for residential development/use when the new separate title to the land is issued.

The nearest development of the land is Berjaya Hills Resort. Besides, the land's close proximity to Genting Highlands would present potential for its residential development, which it expects to contribute positively to the group's future earnings, said the property firm.

Based on the preliminary plan of the proposed development, BLand said the estimated gross development cost is RM250.81 million while the gross development value is RM380.2 million.

It added that the estimated gross profit is about RM129.39 million to be recognised over the duration of the proposed development.

The gross development cost is to be funded through borrowings and internal funds.

BLand shares closed unchanged at 19.5 sen, giving it a market capitalisation of RM959.5 million.