KUALA LUMPUR (March 3): Property developer Asian Pac Holdings Bhd’s (KL:ASIAPAC) wholly owned subsidiary Primadana Utama Sdn Bhd is buying Jaya Shopping Centre in Petaling Jaya, Selangor, for RM100 million cash.

According to the bourse filing, the seven-storey shopping mall covers an approximate area of 92,712 sq ft, including a lower ground floor and four levels of basement car park with 786 car park bays. It has an occupancy rate of 78%.

The vendor is Jaya Section Fourteen Sdn Bhd, whose directors are Hooi Pik Ling, Amy Ng Lee Hoon, Sim Sin Ying, Wan Kwong Weng and Wong Su Cheng.

Asian Pac said it will fund the purchase through a combination of internally generated funds and bank borrowings. The breakdown has not been finalised.

Following the acquisition, the group’s retail net lettable areas will increase to 996,207 sq ft from 728,094 sq ft. Currently it owns Imago Mall in Kota Kinabalu, Sabah.

Asian Pac said the proposed acquisition aligns with its strategy to invest in retail malls, with the objective of increasing net property income.

“This acquisition will not only provide a ready recurring income stream but also allow the group to establish a presence in a location outside its existing operations. The mall is strategically located in the heart of various affluent suburbs in Petaling Jaya and accessible via major roads and highways, enhancing convenience and foot traffic [while] contributing to its potential as a prime retail destination.”

“Premised on the above, the board is optimistic on the prospect of the proposed acquisition to enhance the group’s financial performance,” it added.

As of Dec 31, 2024, the group had cash and bank balances of RM59.51 million, with short-term borrowings of RM223.34 million and long-term borrowings of RM279.03 million.

It expects its net gearing to increase to 0.6 times from 0.51 times following the mall acquisition.

Shares of Asian Pac closed unchanged at nine sen on Monday, giving it a market capitalisation of RM134 million.