Singapore developer to buy land in Melaka for RM108.6m

SINGAPORE: Singapore-listed property developer, Hatten Land Ltd, will acquire two parcels of land in Klebang, Melaka, for RM108.6 million.

The company said in a statement it would acquire an 85% stake in Rico Development Sdn Bhd for RM46.75 million and 75% of Rico Ventures Sdn Bhd RM61.88 million. The two companies own 2.46ha and 2.71ha of land respectively.

The balace stakes in both companies are owned by Hatten Land deputy managing director Datuk Edwin Tan, a passive investor in both entities.

It said the RM108.6 million purchase price would be settled through the issuance of 140.16 million new shares priced at 25 Singapore cents each.

The Melaka-headquartered company said it planned to develop several integrated projects, including seven mixed-use developments and a mall.

It said demand for mixed developments in the area would be robust, underpinned by new township developments and riding on the momentum of China's One Belt One Road Initiative.

Executive chairman and managing director Datuk Colin Tan said within nine months of its listing, the company had expanded its portfolio through value-accretive acquisitions of projects with attractive value propositions to its customers.

“We will continue to explore other opportunities, including options to generate recurring revenue.

“Leveraging on our exclusive access to extensive land bank through the Hatten Group conglomerate, we are able to organise our project development plans, taking into account market conditions and growth potential, among others,” he said.

Earlier in July, Hatten Land marked its entry into the multi-billion dollar global wellness-tourism market through Satori ? Melaka's first wellness hub, comprising 192 serviced suites, a hotel block and a retail mall, with an estimated gross development value of RM300 million.

It has sold 67.5%, or 104 of the 154 units, in the first phase of Satori, increasing its unrecognised revenue to RM760 million as at Sept 30, 2017.

Hatten Land is the property development arm of conglomerate Hatten Group, a leading brand in Malaysia with core businesses in property development, property investment, hospitality, retail and education. - Bernama