KUALA LUMPUR (Dec 6): OSK Holdings Bhd’s (KL:OSK) property arm, OSK Property Holdings Bhd, plans to expand its activities in Kedah with the acquisition of five parcels of plantation land totalling 330.53 acres (133.76 hectares) for RM72 million.
OSK Amanjaya Sdn Bhd, a wholly owned subsidiary of OSK Property, is buying the land, located north of Sungai Petani, from Central Kedah Properties Sdn Bhd.
“The land would enable the group to undertake development activities, meeting the growing demand for residential, commercial and mixed-use properties,” OSK Holdings said in a filing with Bursa Malaysia on Friday.
“This expansion is aligned with the group’s goals of increasing market share in the property development sector while reinforcing its reputation as a leader in delivering quality developments,” it added.
OSK Holdings said the purchase consideration for the property was determined on a willing-buyer, willing-seller basis. It will be financed through a combination of internally generated funds and bank borrowings.
OSK Property deputy group managing director Ong Ju Xing said the acquisition represented another milestone in the company's property development journey in northern Peninsular Malaysia.
"It reflects our confidence in the growth potential of the northern region and our commitment to nation-building,” he said in a statement.
Ong noted that the acquisition follows an earlier transaction this year to acquire 356 acres of land within the same vicinity, raising the total gross development value (GDV) in the area to RM2 billion.
According to OSK’s 2023 annual report, the group has a total land bank of 1,977 acres (about 800 hectares) with an estimated GDV of RM15.1 billion. The lands are located in the Klang Valley, Sungai Petani, Butterworth, Kuantan, Seremban, and Melbourne in Australia.
At the end of September, the group had RM809.32 million in cash, bank balances, and short-term funds. Its short-term borrowings stood at RM1.21 billion, while long-term borrowings amounted to RM2.06 billion.
Shares of OSK Holdings closed up one sen or 0.61% at RM1.65 on Friday, giving the group a market capitalisation of RM3.38 billion.