In a filing with Bursa Malaysia on Friday, Hua Yang said it would acquire Penang-based property developer G Land Development Sdn Bhd for RM16.55mil.
When the acquisition is completed, G Land would buy six parcels of freehold land measuring 8.59 acres for RM25mil cash from GIM Standard Development Sdn Bhd.
The net book value of the land stood at RM7.98mil.
The project would comprise service apartments, condominiums and two-story shoplots.
Hua Yang said it was too early to ascertain the total development cost, expected commencement date of the development and the expected profits to be derived from the development.
The development cost of the property will be funded by internally generated funds.
“We also expect the demand for affordable homes and commercial properties in this area to be on the rise as a result of on-going development and investment activities.
“We are confident that we will be able to leverage on Hua Yang’s capabilities in building quality yet affordable homes to fully unlock the potential of this strategically-located landbank,” chief executive officer Ho Wen Yan said.
The project is located 3km from the Penang Bridge and in the vicinity of several lifestyle and shopping destinations including Mydin Hypermall, Mega Mall in Butterworth as well as Sunway Carnival Mall, Tesco and Aeon Big.
The land is also accessible via the North South Expressway and is surrounded by amenities such as schools, banks and food and beverage outlets.
Hua Yang, which had a total undeveloped land bank of 477 acres with a potential GDV of RM3.7bil, was expecting the agreements to be completed by the fourth quarter of 2015 and first quarter of 2016, respectively.
Shares of Hua Yang closed down two sen to RM1.91 on Friday with 45,400 shares changing hands.
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