UNITED Malayan Land Bhd (UM Land), through wholly-owned subsidiary Dynasty View Sdn Bhd, has entered into a conditional sale and purchase agreement with Kelana Ventures Sdn Bhd to acquire 500 acres of freehold land in Tebrau, Johor Baru, for RM150mil cash.
The acquisition will be financed by a combination of internally generated funds and bank borrowings.
“The acquisition is part of UM Land’s plans to expand its core business of township development in the northern growth corridor of Johor Baru to complement its 2 flagship township development projects – Bandar Seri Alam in Johor and Bandar Seri Putra in Selangor,” the a company statement said yesterday.
The location is easily accessible via the Pasir Gudang Highway and Jalan Tebrau.
The surrounding housing estates include Taman Setia Indah, Taman Desa Tebrau, Taman Johor Jaya, Taman Daya, Taman Pelangi Indah and Taman Mount Austin.
Given its strategic location, UM Land has earmarked the piece of undulating land for mixed development consisting of affordable landed property, apartments and shop-offices, for an expected gross development value of some RM1bil over a period of seven years.
The first launch would be around the middle of 2005 and upon completion, the development would be home to about 30,000 residents.
“The venture is a timely move in view of improving economic fundamentals and positive market sentiment.
The property market is expected to surge ahead, led mainly by the residential sector,” UM Land added.