KUALA LUMPUR (Nov 22): Lagenda Properties Bhd (KL:LAGENDA) said on Friday that an indirectly owned subsidiary of the company has secured the right to develop a 139-acre land in Kota Tinggi, Johor, for RM99.62 million, cash. The final purchase price may still vary.

It said the unit, Opti Vega Sdn Bhd, had exercised an option in a development rights agreement signed with Intact Corporate Approach Sdn Bhd (ICA) earlier this year.

The land (Part 3 land), adjacent to two developments Opti Vega undertook involving four parcels of vacant land measuring some 112.02 acres — some of which have been launched — will form part of the overall master development in the area, said Lagenda Properties in a bourse filing Friday.

Opti Vega inked the development rights agreement on Jan 10 with ICA for the four parcels of adjoining vacant land for RM85.38 million.

Under the latest agreement, ICA will grant Opti Vega the exclusive and irrevocable right to develop the Part 3 land, sell the completed units it builds there, and the full power of attorney to carry out the Part 3 development.

Opti Vega plans to develop a mixed development comprising residential and commercial units on the new plot, with an estimated gross development value (GDV) of RM889 million.

"While there is pre-existing approval for the overall master development layout, the group intends to submit further revisions to increase the GDV of the Part 3 development," the filing stated.

The launch and sale of the Part 3 development are expected to begin within one year of the execution of the latest agreement, Lagenda Properties said.

It plans to fund the project with internal funds and bank borrowings.

Lagenda Properties' share price dipped six sen or 4.58% to close at RM1.25 on Friday, giving the company a market capitalisation of RM1.05 billion.