KUALA LUMPUR (Jan 10): OSK Property Holdings Bhd, the property arm of OSK Holdings Bhd (KL:OSK), is expanding its land bank with the acquisition of four parcels of freehold land measuring 26.33 hectares in Sungai Petani, Kedah, for RM14.17 million.

The acquisition will be funded by internal funds and bank borrowings, it said in a bourse filing on Friday. The seller comprises nine registered proprietors and beneficial owners: Chen Kheng Chian, Chu Hian Lim, Koay Kian Hok, Koay Kim Seng, Koy Kean Guan, Koy Beng Tuang, Koy Kean Hin, Koy Kim Hua, and Koy Kim Yean.

At the end of September 2024, OSK Holdings 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.

The acquisition is part of OSK Property's strategy to increase its market share in the property development sector.

“The integration of the newly acquired land into the group’s existing development pipeline enhances the group’s ability to diversify its property offerings and strengthen its presence in key growth areas,” the group said.

“Supported by Malaysia’s economic recovery and the government's infrastructure development plans, the group anticipates sustained demand for well-located properties, driving revenue and profitability in the coming years,” it added.  

Based on its Annual Report 2023, the group had a total land bank of 1,977 acres (about 800ha), with an estimated gross development value of RM15.1 billion, spread out across the Klang Valley, Sungai Petani, Butterworth, Kuantan, Seremban, and Melbourne in Australia.

Prior to this, the group inked agreements in June and August last year to acquire contiguous freehold plots measuring about 144.4ha in the same area for RM75.79 million cash.

The latest acquisition is expected to be completed by the second quarter of 2025.

OSK Holdings shares closed unchanged at RM1.72 on Friday, giving it a market capitalisation of RM3.55 billion.