KUALA LUMPUR (Jan 19): Property developer Eupe Corp Bhd is purchasing two additional parcels of freehold land in Sungai Petani, located in the Kuala Muda district of Kedah, for RM40.68 million, which will increase the land area around its proposed township, for property development.

It is buying the freehold plots, totalling 221,238 sq m, from Sing Ta Nian Development Sdn Bhd (STNSB), its Friday bourse filing showed.

The plots are also contiguous to two other parcels that Eupe bought in 2022 from STNSB for a total of RM55.31 million and measuring a collective 300,762 sq m.
 
Eupe Land Development Sdn Bhd (ELDSB), Eupe Corp's indirect wholly-owned unit, inked a sale and purchase agreement with STNSB on Friday for the asset purchase.

Eupe plans to fund the acquisitions, which is expected to be completed in four months, with internal funds and bank borrowings.

As at end-August 2023, the group had total borrowings of RM198.04 million, while cash and cash equivalents stood at RM79.9 million.

Eupe also sees the latest acquisitions as part of the group’s strategy to continuously secure strategic land banks and further enforce its presence and project development pipeline in the Northern region.

“Based on the above said, the board is of the view that the proposed acquisition provides an opportunity for efficient deployment of the group’s existing financial resources in order to achieve a better return for its shareholders in the long run,” it added.

Shares of Eupe closed up half a sen or 0.58% to 86 sen on Friday, giving the group a market capitalisation of RM110.08 million.