KUALA LUMPUR (Dec 30): Gamuda Bhd (KL:GAMUDA) is acquiring 389.7 acres of land in the Springhill Industrial Park, Port Dickson for RM424.4 million, cash, from a joint venture (JV) between MUI Properties Bhd (KL:MUIPROP) and Chin Teck Plantations Bhd (KL:CHINTEK).
Gamuda intends to use the land to develop cloud or data centre infrastructure, according to its bourse filing on Monday. Gamuda’s indirect subsidiary, Gamuda DC Infrastructure Sdn Bhd, has signed a sale and purchase agreement with West Synergy Sdn Bhd for the deal.
West Synergy is 60%-owned by MUI Properties’ wholly-owned Peristal Enterprise Sdn Bhd and 40%-owned by Chin Teck’s Double Alliance Sdn Bhd. MUI Properties is 72.26%-controlled by Malayan United Industries Bhd (KL:MUIIND).
The land is valued at RM25 per square foot based on the purchase price. An independent valuation by Savills (M) Sdn Bhd appraised the land's market value at RM400 million, or RM23 per square foot.
Gamuda plans to use internal funds to pay for the acquisition. As of end-October this year, the group had RM3.12 billion in cash reserves. The land purchase is expected to be completed by the end of July 2025
MUI Properties said Gamuda acquired the land in the industrial park of its flagship Bandar Springhill development for the outfit's high-tech digital infrastructure hub.
“Bandar Springhill, which strategically straddles the North-South Expressway and is within half hour travel to Seremban and KLIA, is sited within Malaysia Vision Valley 2.0 planned to elevate the country’s progress in digitalisation and high-tech digital infrastructure development. The sale is expected to establish Springhill as a hub for high-tech digital infrastructure and complementary developments,” it said in a separate filing.
With this transaction, MUI Properties has made a major step forward in the group’s ongoing initiative to monetise its land bank and investment properties, said its executive chairman and chief executive officer Andrew Khoo. "The sale proceeds will, amongst others, enable us to expand our portfolio of new land banks for further growth and long term sustainability."
The company is expected to book a pro forma net gain of RM206.13 million from the land disposal.
Shares in Gamuda ended nine sen or 1.92% higher at RM4.78 on Monday, valuing the group at RM27.19 billion.
MUI Properties' shares, whose trading was suspended earlier on Monday to make way for the announcement, was last traded unchanged at 43.5 sen, giving the company a market capitalisation of RM328.59 million. Chin Teck also settled unchanged at RM7.97, valuing it at RM728.17 million.