KUALA LUMPUR (Oct 17): Chin Hin Group Property Bhd (KL:CHGP) is proceeding with the acquisition of a land parcel in Segambut, Kuala Lumpur for RM31.74 million — marking its second attempt to secure the site after a previous joint development deal with YNH Property Bhd (KL:YNH) fell through.
This move follows a tumultuous period that began when YNH first aborted a direct land sale, then appointed Chin Hin as the developer for a major serviced apartment project, only for that entire arrangement to lapse in July this year.
CHGP is acquiring the land outright through a mix of internal funds and bank borrowings, with plans to develop a new high-rise residential project on the site. The transaction is expected to be completed in the second half of 2026.
Its wholly owned subsidiary BKHS Capital Sdn Bhd signed a sale and purchase agreement (SPA) with Triple-H Auto Parts Sdn Bhd on Friday to acquire the 7,599 sq m parcel. The land forms part of a 16,672 sq m tract currently caveated by Kar Sin Bhd, a wholly owned unit of YNH.
Triple-H Auto Parts is equally owned by Ng Bing Tiam @ Goh Kee Sang and Yew Hock Ming, who is also a shareholder of Archmill Sdn Bhd.
CHGP said the acquisition aligns with its strategy to expand its landbank and strengthen its property development portfolio. As at end-December 2024, its landbank carried a combined book value of about RM218 million, spanning some 88 acres across Kuala Lumpur, Selangor, Melaka, Johor and Penang — covering both ongoing and future projects.
According to the group, BKHS plans to develop a high-rise building comprising about 585 serviced apartment units, complete with parking facilities and other amenities. The average unit size is expected to be around 620 sq ft, subject to final building plan approval.
The project has an estimated GDV of RM239.1 million and a gross development cost (GDC) of RM203 million. Construction is slated to begin in 2027 and be completed by 2031.
CHGP said the purchase price was arrived at on a willing-buyer, willing-seller basis, after internal feasibility studies projected a pre-tax profit of about RM36 million, or a margin of 15% — within the typical range for property development projects.
At midday break on Friday, shares of CHGP were unchanged at RM1.22, valuing the group at RM1.61 billion.