A UNIT of Kumpulan Europlus Bhd has agreed to sell a 1,750-acre parcel of land in Kuala Langat, Selangor, to property developer Astaka Tegas Sdn Bhd (ATSB) for RM587.4mil.
The company said the net proceeds from the disposal would be used to finance the construction of canals between the Klang and Kuala Langat rivers under its flood mitigation project, and for the Shah Alam-Shah Alam 2 Expressway project.
In an announcement to Bursa Malaysia yesterday, Kumpulan Europlus said a sale and purchase agreement for the land had been signed between its subsidiary, Canal City Construction Sdn Bhd, and ATSB – a 50-50 joint venture between Talam Corp Bhd subsidiary Maxisegar Sdn Bhd and IJM Corp Bhd unit IJM Properties Sdn Bhd.
The development land forms part of 5,349 acres of land in Kuala Langat known as the Canal City Development which was alienated to Permodalan Negeri Selangor Bhd in consideration for the construction work on the flood mitigation and expressway projects.
In a separate announcement, Talam Corp said the gross development value of the parcel of land in question was estimated to be in excess of RM4.5bil, with development to be spread over a period of between 10 and 12 years from 2005.
The deal, which is subject to relevant approvals, is expected to be completed in the third quarter of the year.