Kuala Lumpur, May 8 – Hua Yang Bhd announced last week that it entered into a Sale and Purchase Agreement (SPA) with Bumi Semarak Development Sdn Bhd, to acquire a parcel of land in Bandar Meru Raya, Perak. Measuring approximately 3.8 acres, the land will be acquired for a total purchase consideration of RM15.3 million.
Hua Yang aims to develop 720 units of service apartments and 72 units of commercial shop lots on the piece of land. The Gross Development Value (GDV) is estimated at RM295.1 million.
Ho Wen Yan, Chief Executive Officer of Hua Yang, said, “This proposed acquisition is in line with our objective to expand our presence in Perak. The completion of this acquisition will enable us to tap into the high growth and fast developing Bandar Meru Raya, which is known as an integrated and efficient township.”
“We plan to leverage on our expertise, experience and positive track record to offer quality, affordable and innovative homes to the expanding population in this dynamic economic area.”
Located in the northern part of the Ipoh and strategically beside the North-South PLUS Highway, the parcel of land is in close proximity to an inter-state bus terminal, a hotel and convention centre, a hypermarket, business and cyber-centre as well as a sports centre and an international school.
The acquisition will be satisfied through internally-generated funds and/or bank borrowing and is expected to be completed by the second quarter of the 2018 financial year, subject to certain Condition Precedents to be fulfilled from the date of the SPA.
“This exercise is also in line with our aim of replenishing our current landbank and the completion of the acquisition will put us one step closer towards our goal in achieving a total undeveloped landbank GDV of RM5 billion. Additionally, in the long-term, we expect this acquisition to contribute positively to the Group’s earnings,” Ho concluded.