KUALA LUMPUR (Jan 16): Chin Hin Group Property Bhd (CHGP) is acquiring six parcels of land in Melaka for RM41.94 million, cash, to develop a residential project with an expected gross development value of RM1.01 billion. 

In a bourse filing on Tuesday, Chin Hin said it is buying the leasehold plots — measuring collectively 838,736 sq ft, located in Kawasan Bandar XLIII, Melaka Tengah — at a discount of about 50% from their current market value, which were RM84 million as of October 2023.

The group has, via its indirect wholly owned Chin Hin Property (Melaka) Sdn Bhd (CHPMSB), inked the agreement to acquire the plots from MDS Developments Management Sdn Bhd, Aim Development Worldwide Sdn Bhd (ADW) and Aim Holdings Worldwide Sdn Bhd (AHW).

CHGP plans to fund the proposed acquisition via external borrowing and internal funds. As at end-Sept 2023, CHGP’s total borrowings stood at RM352.29 million, with a cash and bank balance of RM49.45 million, its latest financial statement showed.

The gross development cost of the project it plans to build on the plots is about RM792 million.

“Given the strategic location of the lands and barring any unforeseen circumstances, the board is confident that the proposed acquisitions will contribute positively to the earnings of CHGP in future.

“The proposed acquisitions augur well for CHGP Group as they are in line with the group’s strategy to strengthen its property development segment and at the same time, diversify its presence to Melaka,” the group said.

Shares in CHGP closed down three sen or 3.77% to 76.5 sen on Tuesday, giving the group a market capitalisation of RM463.04 million.