MELAKA: Teladan Setia Group Bhd is buying 519.8 acres of land in Jasin, Melaka, from Eramaju Tegas Sdn Bhd for RM95.1mil.
The Melaka-based and Ace Market-listed property developer’s wholly-owned subsidiary, Asal Harta Sdn Bhd (AHSB), had entered into a conditional sale and purchase agreement for the three parcels of land.
The deal will be financed by cash and bank borrowings and is expected to be completed by the fourth quarter of 2021.
In a statement, Teladan Setia managing director Richard Teo Lay Ban (pic) said the three parcels of land are close to each other and the group aims to build landed residential properties priced from RM200,000 to RM400,000.
“Based on our recent market studies, we believe that landed homes remain the property of choice among the local Melaka population for the foreseeable future, ” said Teo.
He added that the deal is in line with the group’s aim to expand its presence beyond the city centre of Melaka.
Prior to this, Teladan Setia had also bought a 116-acre land in Jasin, Melaka.
Meanwhile, the group is also completing the acquisition of another five parcels of land totalling 29.2 acres in Alor Gajah and Central Melaka.
With the latest deal, the group’s total land bank will grow to 738.9 acres.
Teo said it is an opportune time for the group to increase its land bank.
“With lower than usual land prices and the low interest-rate environment, we have been more aggressive with our land bank expansion efforts in recent times.
“Through the proceeds raised from the recent initial public offering exercise and an already healthy cash balance prior to that, these land bank acquisitions will provide a strong foundation to sustain our long-term growth, ” said Teo.
He also opined that the property market is poised for a turnaround, underpinned by the recovery of the economy following the rollout of the Covid-19 vaccination programme.
“Early signs of an upturn are already evident today. Based on the recent data published by the Real Estate and Housing Developers’ Association, property sales in Malaysia rose around 5.9% in the second half of 2020, from the same period of 2019, ” said Teo.