KUALA LUMPUR (July 2): Malton Bhd (KL:MALTON) said it is acquiring 30.17 acres of freehold land in Genting Highlands from fellow property developer Global Oriental Bhd (KL:GOB) to build serviced apartments and luxury villas.

Malton is buying the land for RM65 million, or RM49.46 per sq ft, cash, from Global Oriental's 51%-owned subsidiary Sering Manis Sdn Bhd, the group said in an exchange filing on Tuesday.

It said the development is expected to generate an estimated gross development value of RM1.29 billion.

Malton, which intends to fund the costs and expenses through internally generated funds and bank borrowings, said the acquisition provides an opportunity for the group to acquire a piece of prime land in Genting Highlands which has seen an increase in development activities. 

It said Sering Manis, which owns 248 acres of land adjacent to the 30.17 acres being acquired by Malton, is the master developer of the area and will be constructing common infrastructure to serve both lands.

In a separate filing, Global Oriental said it has agreed to share a portion of infrastructure costs, totalling RM26 million. This cost will be paid progressively based on work certificates for the agreed infrastructure that is scheduled for completion within 42 months.

Global Oriental added that the disposal of the 30.17 acres represents a good opportunity for the group to realise the capital appreciation of the land.

It said the proceeds from the sale, which is expected to be completed by the fourth quarter of 2024, would enable the group to reduce its borrowings and secure working capital for future development projects and business opportunities. 

Malton’s shares closed two sen or 4.71% higher to 44.5 sen on Tuesday for a market capitalisation of RM235.02 million. Global Oriental rose one sen or 4.88% to 21.5 sen, valuing the company at RM97.76 million.