Gadang Holdings Bhd is selling 3.84 hectares of residential land in Taman Melawati, Kuala Lumpur for RM43 million cash to strengthen its property division’s cash flow position.

The proposed disposal will enable the group to also reallocate its cash flow to its bigger ongoing projects and future developments, such as projects in Gelang Patah (Johor Baru), Semenyih, and Cyberjaya, it said in a filing with Bursa Malaysia.

Further to that Gadang said the land disposal is in line with the group’s strategy to pare down its existing borrowings to improve its gearing level.

Gadang’s wholly-owned subsidiary, Gadang Land Sdn Bhd (GLSB) has entered into a sale and purchase agreement with SkyRia Development Sdn Bhd for the land sale.

SkyRia Development is wholly owned by city developer Skyworld Development Sdn Bhd, which is controlled by Datuk Ng Thien Phing.

Gadang said the proposed disposal would likely be completed by the first quarter of 2022.

According to the filing, GLSB’s original cost of investment for the land was RM33.11 million or RM80 per square ft. It acquired the land in 2013 from Lembaga Kumpulan Wang Biasiswa Pengajian Tinggi Raja-raja dan Yang DiPertua-Yang DiPertua Negeri.

GLSB had planned to develop the land via its wholly-owned subsidiary, Prelude Avenue Sdn Bhd (PASB), and initiated the project in 2016 but received backlash from the Taman Melawati residents.

According to previous reports, the residents raised their concern that nature and wildlife in the hills will be destroyed if the project is carried out.

The proposed hillside high-rise development project is located between Bukit Mas and Desa View Tower along with Jalan Kolam Air.

According to Gadang, PASB had on June 7, 2017, and March 18, 2021, respectively, obtained the development order (DO) and building plan approval from the relevant authorities to undertake a residential development comprising two 22-storey blocks with a total of 479 units of apartments.

It said in the filing that the land shall be sold to SkyRia Development with the existing and valid DO and building plan approval, subject to all conditions.

GLSB was established in 1996. Its maiden project comprised 30 units of semi-detached factories in Shah Alam and over the years it has developed terraced houses, semi-detached homes, apartments, luxury condominiums, detached factories, shop office suites, and serviced apartments mainly in the Klang Valley region.

The company created additional milestones when it entered into a joint venture as a landowner for the proposed integrated commercial development comprising a retail mall, office suites, and hotel suites in Bandar Johor Bahru in 2013.

In 2014 and 2017, GLSB won the joint development tenders where it became the developer for 2,500 housing units in Cyberjaya and 780 residential units in Kwasa Damansara.

Source from: New Straits Times/Sharen Kuar, 24 August 2021

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