Hap Seng Consolidated Bhd is buying a parcel of vacant commercial land on Jalan Duta here for RM868.8 million to build a mixed development with an estimated gross development value of RM8.7 billion.

Hap Seng, via its wholly-owned Sierra Positive Sdn Bhd, has inked an agreement with Naza TTDI Sdn Bhd’s unit TTDI KL Metropolis Sdn Bhd (TLKM), to buy the land known as Met 3, Plot 7A, KL Metropolis, measuring 668,212.79 square feet. Naza TTDI is 80%-owned by Naza Corp Holdings Sdn Bhd (NCH).

The group plans to fund the land buy, using internal funds and bank borrowings, its bourse filing showed.

The acquisition is expected to strengthen its property development presence in KL Metropolis, Hap Seng said.

“KL Metropolis is one of the most sought-after addresses in the Klang Valley, surrounded by the prestigious townships of Damansara Heights, Sri Hartamas, Mont Kiara and Bangsar.

“Home to the largest trade and exhibition centre in Malaysia, various plans to further improve connectivity within and around KL Metropolis are already underway,” Hap Seng said.

Accordingly, the group is confident that the connectivity and accessibility of the Met 3 Land will bode well for its future project launches, and is expected to create sustainable revenue and profitability for its property development business.

Based on the audited consolidated financial statements of the group for the financial year ended Dec 31, 2020, and assuming that the Met3 acquisition had been effected at the end of the financial year, the group said its net debt-to-equity ratio would have increased from 0.41 times to 0.51 times.

Hap Seng expects to complete the purchase within seven months.

The company’s shares closed unchanged at RM7.70 on Monday (Jan 3), with a market capitalisation of RM19.17 billion.

Source: EdgeProp, January 4, 2022