KUALA LUMPUR (April 23): Gadang Holdings Bhd said it will appeal to the Economic Planning Unit (EPU) for a waiver of the Bumiputera equity requirement to facilitate its acquisition of a 21.08-acre land in Kwasa Damansara.
In a bourse filing on Tuesday, the builder-cum-property developer said the EPU had on Monday rejected its proposed acquisition as it did not meet the 30% Bumiputera equity ownership requirement.
"The purchaser will be submitting an appeal to EPU to waive the Bumiputera equity requirement," the group added.
Gadang had in November 2023 entered into an agreement with Kwasa Development (3) Sdn Bhd (KD3) to acquire the land in Kwasa Damansara for RM114.78 million, or RM125 per square feet, to be developed into a residential project.
Kwasa Land Sdn Bhd, the master developer of the Kwasa Damansara township and parent of KD3, had awarded the development rights of the plot, known as R3-1, to Gadang in 2017.
A sum of RM76.40 million has already been paid by Gadang to KD3 as part of a development rights agreement entered into by the two parties in 2017.
The remaining RM38.38 million of the purchase price has yet to be paid, pending the outstanding EPU approval, Gadang said in an earlier filing on April 1.
Subsequently, KD3 has granted Gadang an extension of time of one month to pay the balance purchase price with a late payment interest of 7% per annum.
Shares in Gadang settled half a sen or 1.28% higher at 40 sen, giving the group a market capitalisation of RM283.8 million.