Dijaya Corp's RM1.3b Canal City site purchase 'favourable'

KUALA LUMPUR: Dijaya Corp Bhd's acquisition of the 1,172 acres of land in Canal City for RM1.3bil is “favourable” due to its "cheap" price tag and payment terms which bodes well for its balance sheet, UOB KayHian Malaysia Research says.

"Although Dijaya's surprise landbank acquisition runs against our earlier assessment the company was in an asset monetisation and degearing mode, its acquisition of 1,172 acres of land in Canal City from the state of Selangor for effectively RM1.3bil (RM25.41per square foot) is deemed cheap," it said.