BLand buys 871 acres in Selangor for RM155mil

PETALING JAYA: Berjaya Land Bhd (BLand) is proposing to buy 871.01 acres in Ulu Selangor from BerjayaCity Sdn Bhd (BCity) for RM155mil cash in a related party transaction.

In a filing with Bursa Malaysia on Thursday, BLand said the proposed purchse of the land north of Bukit Tagar Sanitary Landfill, which currently comprises oil palm estates and vacant lands, provided an opportunity for the group to increase its land bank.

The company said its 100%-owned subsidiary, Alam Baiduri Sdn Bhd, had entered into a sale and purchase agreement with BCity, a 100%-owned subsidiary of Berjaya Corp Bhd (BCorp), for the acquisition of the freehold plots at RM177,954 per acre.

BCity is involved in property investment and development as well as cultivation and sale of palm oil and palm kernel.

Separately, BLand reported a net loss of RM27.24mil for its first quarter ended July 31, 2016, compared with a net profit of RM9.91mil in the previous corresponding period.

BLand said the net loss in the first quarter was mainly attributed to losses incurred by the property development and investment business from lower progress billings.

The weaker earnings were also due to unfavourable foreign exchange effect recognised by the group and higher share of losses from associated companies, particularly from Berjaya Assets Bhd which reported an impairment in goodwill.

BLand reported revenue of RM1.55bil during the first quarter of this year compared with RM1.50bil in the previous corresponding period.

On its prospects for the current financial year, BLand said the performance of the hotels and resorts business was expected to remain satisfactory while the property market outlook was expected to remain lukewarm.

“Under the foregoing circumstances, the directors are of the view that the operating performance of the group will continue to remain challenging in the remaining quarters of the financial year ending April 30, 2017,” it said.