KUALA LUMPUR (July 10): Lim Seong Hai Capital Bhd (KL:LSH) on Friday announced it is planning a mixed development with an estimated gross development value (GDV) of RM1.91 billion in Subang Jaya after sealing an agreement to buy and develop 17.4 acres of land from Railway Assets Corporation (RAC) for RM197.9 million.
In a Bursa Malaysia filing on Friday, the group said its wholly-owned Astana Setia Development Sdn Bhd had entered into a conditional sale and development agreement with RAC, a statutory body under the Ministry of Transport, to acquire two parcels of land in Pekan Country Height, Subang Jaya.
LSH in May announced that it had received an offer from RAC for the land after submitting its plans under the latter's request for proposal exercise to develop the site.
The group has paid an earnest deposit of RM3.96 million, while the remaining 90% of the purchase consideration will be funded through a combination of internally generated funds, bank borrowings and equity fund-raising exercises.
As at end-March 2026, LSH had cash and bank balances of RM9.67 million and fixed deposits with licensed banks of RM81.87 million.
Mixed development to begin in 2H2027
The purchase price, equivalent to RM261 per sq ft, takes into account an independent valuation of RM202 million or RM266 per sq ft by Nawawi Tie Leung Property Consultants Sdn Bhd.
The mixed development it is planning comprises up to six residential towers with integrated retail and commercial components, subject to regulatory approvals. Gross development cost of the project is estimated at RM1.32 billion.
The development is envisaged to be undertaken in phases over five years, with construction expected to commence in the second half of 2027 and completion targeted for the second half of 2032.
LSH intends to fund the development cost through a combination of internally generated funds, borrowings, equity fund-raising and progressive billings from property sales.
The acquisition is expected to be completed by the third quarter of 2027, subject to shareholders' approval, Economic Planning Unit approval and other regulatory clearances.
Shares of Lim Seong Hai Capital closed up four sen or 2.53% at RM1.62 on Friday, giving it a market capitalisation of RM1.36 billion.