KUALA LUMPUR (Sept 28): Property developer AYER Holdings Bhd (KL:AYER) has proposed to acquire for RM138 million cash two parcels of contiguous freehold land along Jalan Kuchai Lama here, with a combined area of 9.11 acres, for future development projects.
In a bourse filing on Monday, AYER said its wholly-owned subsidiary, Kuchai Urban Development Sdn Bhd had entered into a conditional sale and purchase agreement with vendor Bukit Cemerlang Sdn Bhd on Sept 28.
The transaction is a related‑party transaction because the Lim family are substantial shareholders of AYER and Bukit Cemerlang. The AYER stake is held through their interests in Bee Guan Sdn Bhd and Twin Trees Holdings Sdn Bhd.
The group said the acquisition provides an opportunity to expand its portfolio within an established and mature Kuala Lumpur neighbourhood with a diverse population base ranging from young professionals to growing families, driving demand for both residential and lifestyle offerings.
The proposed acquisition price is at a 4.8% discount of the RM145 million valued by independent valuer CBRE WTW Valuation & Advisory Sdn Bhd on Sept 15, 2026.
The land’s net book value stood at RM703,815 as at Dec 31, 2025.
The group plans to fund 20% of the purchase consideration through internally generated funds and 80% via bank borrowings.
The first parcel, measuring 2.06 acres, carries a land title for fruit tree cultivation, while the second parcel, measuring 7.05 acres, is designated for coffee cultivation.
To convert the land from agriculture to commercial purposes, AYER must get approval from state authorities.
The vendor acquired the first parcel on Dec 4, 1972, for RM89,843, and the second parcel was purchased on Dec 22, 1973 for RM296,249.
The parcels are 12km southwest of Kuala Lumpur city centre and about 7km southeast of Petaling Jaya New Town. They are near several urban hotspots, including Mid Valley City, KL Eco City, Bangsar South and Taman Desa, and are connected via major highways, such as Jalan Klang Lama, the New Pantai Expressway (NPE) and KESAS, and public transport nodes.
The proposed acquisition is subject to approval by the non‑interested shareholders of the group at an extraordinary general meeting and is expected to be completed by the first quarter of 2027.
The group has appointed UOB Kay Hian (M) Sdn Bhd as the principal adviser while BDO Capital Consultants Sdn Bhd is the independent adviser to the non-interested directors and non-interested shareholders on whether the acquisition is fair and reasonable and not detrimental to them.
AYER shares closed 12 sen or 1.65% higher at RM7.60 on Monday, valuing the company at RM568.9 million.