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Wednesday August 17, 2011

BLand to buy land from Penang Turf Club

PETALING JAYA: Berjaya Land Bhd (BLand) has entered into a conditional sale and purchase agreement with Penang Turf Club to acquire 57.3 acres of prime freehold land for RM459mil cash for high-end residential property projects.

In a filing with Bursa Malaysia yesterday, BLand proposed development that includes (but not limited to) the construction of bungalows, semi-detached houses, condominiums and apartment units on the newly acquired land.

“The salient features of the development are a low-density exclusive guarded and gated-up housing development comprising bungalows, semi-detached houses, condominiums and low medium cost housing (as required by the local regulations) cum abundance of landscape and greenery,” it said.

BLand added that estimated GDV of the project was RM1.52bil, However, the total development cost and the source of funds for the development would only be ascertained once the development plans were finalised. The property development is expected to be developed over five years.

Prime land: Tan says the development on the 57-acre site will not affect the turf club horse-racing activities.

Upon the execution of the sale and purchase agreement, BLand has to pay a deposit of RM20mil to Penang Turf Club while the balance of the deposit of RM25.9mil to be paid within 14 days after obtaing the planning approval. Subsequently, BLand will make the first payment of RM137.7mil within 12 months from unconditional date of the sales and purchase agreement while second payment to be paid within 12 months after the first payment followed by a third payment at a 12 months interval from the second.

BLand said the purchase price at about RM8.01mil per acre or RM184 per square feet.

“The purchase price will be funded through the internally generated funds of the BLand group and borrowings. The actual mix will be decided at later stage after taking into consideration the BLand group's gearing, interest costs and other working capital requirements,” it said.

Meanwhile, Bernama quoted Berjaya Corp Bhd founder Tan Sri Vincent Tan as saying: “We've won the bid to buy 57 acres of land and we're now planning to develop the land into an exclusive residential area comprising bungalows, semi-detached houses and low-rise condominium.”

Given the strong demand for high-end landed properties in Penang, Tan hoped the exclusive homes could further boost value of suburban housing in the area.

“In fact, at first, I wondered whether we've overpaid the price for the land, but we believe in the long term, it will turn out to be a good investment. We're confident that with Berjaya's commitment, this property will be developed into an important residential landmark in Penang,” he said.

Tan said Berjaya established its first property and hotel development in Penang in mid-1990s. “We're happy to be back here again and to be associated with an established and reputable name like Penang Turf Club,” he said.

He said development of the 57 acres would not affect the turf club horse-racing activities which would be held on the newly repaired and rejuvenated main racing track.

Tan also said BLand was looking for other strategic and attractive places in Penang for investment.

In 2004, BLand has won the bid to relocate the Selangor Turf Club in Sungei Besi for RM640mil, and in return BLand gets the club's land in Sungai Besi and plans to carry out a mixed development project valued at RM6.3bil.

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