PETALING JAYA: Citaglobal Bhd
has revealed that it has no immediate plans to develop the 1.58-acre land at Jalan Tun Razak, Kuala Lumpur, which it intends to acquire from Bank Islam Malaysia Bhd.
In a filing with Bursa Malaysia, the construction engineering company said the decision not to develop the land was a strategic approach to maximise long-term value creation.
Citaglobal announced last week that its indirect wholly-owned subsidiary, Sinergi Dayang Sdn Bhd, had acquired the 6,410 sq metre parcel of leasehold land from Bank Islam for RM73mil.
On the net book value of the land, Citaglobal said it was unable to disclose its value, as it is not privy to this information from Bank Islam.
“Based on the open market valuation conducted by the company’s appointed independent valuer, Intra Harta Consultants Sdn Bhd, the indicative market value of the land is RM70mil on an 'as-is' basis and RM138mil on an assumption basis - assuming the land is approved for mixed commercial development, the current express condition is revoked, and the lease period is extended to a 99-year leasehold tenure.”
