PETALING JAYA: Scientex Bhd
’s latest proposed land acquisition in Melaka will present a significant opportunity for the group to expand its footprint in the southern region, particularly in Melaka.
The group is acquiring 528.5 acres of freehold land in Paya Rumput from Genting Plantations Bhd for RM333.8mil, with the intention for a mixed development project.
TA Research in a report said: “We view this proposed acquisition favourably as it marks the sixth affordable housing township in Melaka, following Scientex’s largest development in Bandar Jasin.”
To date, Scientex’s developments in Melaka have achieved an 81% take-up rate.
“We believe this land acquisition comes at an opportune time for replenishing Scientex’s existing land bank in Melaka,” the research house added.
In terms of land cost, TA Research said the acquisition price of RM14.50 per sq ft for the new Paya Rumput land is higher than the average price of RM7.63 per sq ft the company paid for its recent three land purchases in Melaka.
According to online sources, freehold plantation lands in Paya Rumput are currently trading at an average price of RM11 to RM16 per sq ft.
“Given that the acquisition price falls within this prevailing market range, we consider the purchase price fair, as the land is at close proximity to Melaka city, in contrast to Scientex’s existing developments in Jasin and Durian Tunggal,” TA Research said.
As the acquisition is still in the preliminary stage, there is no gross development value guidance available at this point.
