KUALA LUMPUR (May 14): Property developer BCB Bhd (KL:BCB) is buying 59 parcels of freehold land in Batu Pahat, Johor, measuring approximately 286.82 acres, for RM83.71 million from oil palm cultivator Lian Hup Seng Sdn Bhd. 

In a filing with Bursa Malaysia on Tuesday, BCB said it plans to develop the land into a mixed-use development featuring both residential and retail, with an estimated gross development value of RM1.1 billion spanning over eight years.

"This endeavour will enable BCB to improve its market share and enhance the variety of products offered to homebuyers in Batu Pahat," the group said, adding that the project is anticipated to commence in 2027.

The group said the land acquisition is part of the group landbanking effort.

“This strategic move will substantially increase the land bank of BCB group and provide sustainable earnings over the medium to long term, given the favourable outlook of the property market in Johor,” it added.

BCB said the acquisition will be funded by a combination of internally generated funds and bank financing. "The exact funding mix will be decided by the management at a later stage after taking into consideration the group’s gearing level, interest costs as well as internal cash requirements for its business operations," it said. 

Barring any unforeseen circumstances, the acquisition is expected to be completed by 2025.   

Shares of BCB closed unchanged on Tuesday at 42 sen, with a market capitalisation of RM173.25 million.