KUALA LUMPUR (May 5): Rivertree STF Synergies Bhd (KL:RSSB) is acquiring two Kuala Lumpur-based property development companies for a total of RM46.3 million from its major shareholder and executive director Datuk Leong Sai Mun, as part of its strategy to expand its property business into the serviced apartment portfolio.

In a Bursa Malaysia filing, RSSB said it will buy Rivertree Landmark Sdn Bhd (RLSB) for RM32.7 million and Rivertree Signatures Sdn Bhd for RM13.57 million in cash from Leong and others through two separate deals. Leong owns a 66% interest in RLSB and a 90% share in Rivertree Signatures.

Leong holds a 12.31% direct and 1.95% indirect stake in RSSB and is also the founder of the Rivertree group. He emerged as a substantial shareholder of RSSB on Oct 16, 2025. 

RLSB owns a parcel of land in Kuala Lumpur city centre approved for a 28-storey serviced apartment project comprising 210 units. The site has a market value of RM62 million, with a gross development value (GDV) of RM273.6 million and gross development cost (GDC) of RM188.7 million. Construction is expected to run from the second quarter of 2026 to the fourth quarter of 2031.

Rivertree Signatures owns a 0.8073-hectare Malay reserve commercial site in KL East for the Aisya @ KL East development. The project carries a GDV of RM381.2 million and GDC of RM344 million. It is located near the MRR2, Gombak LRT Station and the future ECRL Gombak Station, with construction scheduled from the second quarter of 2027 to the fourth quarter of 2031.

Combined, the two projects have an estimated GDV of about RM655 million. RSSB said both acquisitions will strengthen its development pipeline, though the assets are currently loss-making and dormant, with neither company generating revenue as at the latest financial year.

RLSB recorded a net debt position of RM19.4 million, while Rivertree Signatures posted net debt of RM9.87 million as at their latest financial periods.

At the same time, RSSB is disposing of Irama Setia Sdn Bhd, which owns land in Kuala Kubu Bharu, for RM12.97 million cash to executive chairman Datuk Seri Rahadian Mahmud Mohammad Khalil. The group said the disposal will result in a small loss but will free up funds for working capital and construction needs.

RSSB said proceeds from the disposal will be used mainly to support the RLSB and Rivertree Signatures developments, improving financial flexibility. If the acquisitions are not approved, the proceeds will still be retained for working capital purposes. All of its proposals are subject to RSSB’s shareholders approval.

The group expects both the acquisitions and disposal to be completed by the third quarter of 2026.

The group changed its financial year end from Dec 31 to June 30 in 2025. For the six-month period ended Dec 31, 2025, the group made a net profit of RM678,000 on RM19.5 million in revenue. The group had cash and bank balances of RM11.5 million and RM184,000 in borrowings. 

RSSB shares fell one sen or 3.03% to 32 sen on Tuesday, valuing the company at RM164.66 million.