KUALA LUMPUR (April 28): Avaland Bhd (KL:AVALAND) said it is acquiring 7,613 square metres of freehold land in Taman U-Thant, Kuala Lumpur for RM86.04 million to expand its presence in the high-end residential segment within the Klang Valley.

In a Bursa Malaysia filing on Tuesday, the property developer said its wholly-owned unit, Nexus Advertising Sdn Bhd, is buying the land from Tong Ah Company Sdn Bhd.

The land, which is currently zoned for residential use, is earmarked for a proposed high-rise residential development with a preliminary gross development value of about RM700 million, the group said.

Avaland said the acquisition is aligned with its long-term strategy to strengthen and expand its footprint in the Klang Valley.

“This acquisition will further enhance the group’s presence in the luxury residential segment, building on the strong market response and success of the group’s earlier luxury developments, Aetas Damansara and Aetas Seputeh,” Avaland said, adding that the site’s location in an established embassy enclave and limited supply of new large-format residential projects nearby present a development opportunity.

The group plans to fund the acquisition through a combination of internally generated funds and bank borrowings, with the deal expected to be completed by the first quarter of 2027.

Shares in Avaland rose 1.5 sen or 8.33% to 19.5 sen on Tuesday, giving the group a market capitalisation of RM284.1 million.