KUALA LUMPUR (July 1): Property developer Avaland Bhd (KL:AVALAND) plans to acquire a 2.17-acre plot of land in Section 13, Petaling Jaya, to undertake a high-rise commercial development with an estimated gross development value of RM320 million.
In a filing with Bursa Malaysia on Tuesday, Avaland said it is acquiring the property through its wholly owned unit, Leisure Event Sdn Bhd, from Comit Communication Technologies (M) Sdn Bhd (CCT) for RM49 million. CCT is 75.5%-owned by Warisan TC Holdings Bhd (KL:WARISAN) and 24.5% by Tan Chong Motor Holdings Bhd (KL:TCHONG).
The purchase, to be funded through internally generated funds and bank borrowings, is expected to be completed by the fourth quarter of 2025.
Avaland said an independent valuation by CBRE WTW Valuation & Advisory Sdn Bhd appraised the leasehold land, located adjacent to Plaza 33, at RM49 million. The land’s net book value stands at RM45.5 million.
The land acquisition is not expected to have a material impact on its earnings for the financial year ending Dec 31, 2025, but is anticipated to contribute positively to future earnings.
“We are excited about this acquisition as it represents a strategic step in expanding our presence within the vibrant and thriving township of Petaling Jaya. The encouraging response to our earlier developments across the Klang Valley reinforces our confidence in this location,” said Avaland CEO Apollo Bello Tanco (pictured) in a statement.
In a separate filing, Warisan TC Holdings said the disposal reflects a prudent decision to divest the asset, given the remaining lease tenure of 50 years. “As the remaining term of the lease shortens, it is anticipated that the market value of the property will gradually decline, reflecting the diminishing lease tenure.
“Unless the lease tenure is successfully renewed—potentially at a significant cost—this decline in value is likely to continue as the expiry date approaches,” it said.
Warisan TC added that it has held the property for over a decade and that monetising the asset at current market value was a timely move to unlock shareholder value.
Shares of Avaland closed half a sen or 1.8% higher at 29 sen, valuing the company at RM422.5 million. The counter has declined almost 10% year-to-date.
Warisan TC closed unchanged at RM1.05, giving it a market capitalisation of RM70.56 million. The stock has fallen almost 30% year-to-date.
Source: The EdgeProp Malaysia (3 July 2025)