KUALA LUMPUR (March 27): BCB Bhd is buying six adjoining plots of agriculture land, measuring a combined 18.91 hectares, in Batu Pahat, Johor for RM34.6 million.

The property developer said it is buying the freehold plots from two Sinagporeans, Wellington Tan and Shenton Tan Seng Koon, to develop 400 mixed-residential units comprising bungalows, semi-Ds and terrace houses.

The purchase will be funded via a combination of internal funds and borrowings, BCB said in a filing today

No valuation was carried out on the land by any independent registered valuer, it added. BCB however said that its internal assessment dictated the purchase to be “within the range of market values for similar land in the vicinity” and that the land cost is a “reasonable” 10% of the expected gross development value.

That amounts to an estimated gross development value of  RM360 million for the development — part of which will feature a panoramic view of Batu Pahat.

“The lands are strategically located along Jalan Tanjong Laboh, one of the gateways to Batu Pahat town centre,” said BCB, adding that the development is expected to be completed within four years.

“It is too preliminary at this stage to ascertain the total development cost and expected profits to be derived from the proposed development,” said the group.

The acquisition, BCB said, will enhance its position as the premier property developer in Batu Pahat, where the company currently has between 50% and 60% of the property development market share.

BCB’s share price closed 2.13% or one sen higher at 48 sen today, giving it a market capitalisation of RM192.17 million.