A bungalow in the Urbana @ D’Alpinia development by Hap Seng.
KUALA LUMPUR: Hap Seng Consolidated Bhd
plans to undertake two mixed development projects in Kuala Selangor with an estimated total gross development value (GDV) of RM9.3bil.
In a filing with Bursa Malaysia, the plantation and property development group said its unit Euro-Asia Brand Holding Company Sdn Bhd had signed two agreements to acquire 734.82 acres (proposed acquisition A) from Shalimar (Malay) PLC for RM121.54mil and 714.704 acres (proposed acquisition B) from Indo Malay PLC for RM107.21mil.
The two projects it envisions, both with a 15-year development period, will be built on these two pieces of land.
For proposed acquisition A, the project comprises modern guarded and gated lifestyle residential properties and commercial components with an estimated GDV of RM5bil. For the second land acquisition, Hap Seng wants to build a township “to meet the increasing demand for affordable properties” with an estimated GDV of RM4.3bil.
Shalimar and Indo Malay, the owners of the agricultural land with oil palm trees, are subsidiaries of Goodhope Asia Holdings Ltd and are mainly involved in oil palm plantation. Diversified Colombo-headquartered group Carson Cumberbatch PLC is Goodhope’s ultimate parent company.
Hap Seng said the proposed acquisitions would increase the group’s gross gearing ratio from 0.99 to 1.04.
The company expects the proposed acquisitions to be completed in the third quarter of the year.
“The proposed acquisition is in line with the company’s strategy to strengthen its presence in West Malaysia. In addition, this will provide the company with the opportunity to expand its current land bank in order to sustain its core business as a property developer as well as to enhance its future earnings,” it said.
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