KUALA LUMPUR (Nov 28): Gadang Holdings Bhd is acquiring a 21.08-acre land in Kwasa Damansara for RM114.78 million, or RM125 per square feet, to be developed into a residential project.
The group is acquiring the land via its indirect wholly-owned subsidiary Elegance Sonata Sdn Bhd (ESSB) from Kwasa Development (3) Sdn Bhd (KD3), said Gadang in a filing with Bursa Malaysia on Tuesday.
A sum of RM76.40 million has already been paid by ESSB to KD3, as part of a development rights agreement entered into by the two parties in 2017. This forms part of the payment toward the purchase price.
Kwasa Land Sdn Bhd, the master developer of the Kwasa Damansara township and parent of KD3, had awarded the development rights of the 21.08-acre plot, known as R3-1, to Gadang in 2017.
Meanwhile, the remaining RM38.38 million of the purchase price will be funded via a combination of internally generated funds and bank borrowings, said Gadang.
ESSB has obtained the development order from the relevant authorities for the residential development on the land, comprising 628 units of condominiums and 152 units of double-storey terraced houses.
The proposed development is estimated to have a potential gross development value of RM700 million, over a minimum period of five years. The project is expected to commence in the second half of 2024.
Gadang said the acquisition will give ESSB the flexibility on the timing to launch the development. “ESSB will be able to phase out launches according to prevailing market conditions, and will not be required to launch the sale of units based on the timelines fixed by KD3,” it said.
Shares of Gadang closed unchanged at 33 sen on Tuesday, with a market capitalisation of RM240.26 million.