KUALA LUMPUR (Oct 31): Selangor Dredging Bhd’s wholly owned unit is buying 29.19 acres (11.81 hectares) of vacant leasehold land, together with completed earthworks, in Dengkil, Selangor for RM87.9 million from Xtra Touch Sdn Bhd.

The acquisition is part of Selangor Dredging’s ongoing effort to identify suitable properties for its land bank, the group said in a stock exchange filing on Tuesday.

Xtra Touch is wholly owned by Project Alam 2012 Sdn Bhd, and its directors are Choo Choon Seng, Loy Boon Chen Tey Kim En, and Loy Zhen Qi @ Li Zhen Qi.

Selangor Dredging said the land is located within the township of Taman Putra Perdana, within close proximity to major highways and facing a 20-acre lake.

The land’s gross development value is estimated to be approximately RM609 million, as the group’s wholly owned unit Prestij Permai Sdn Bhd is proposing to develop the land into about 550 units of two- and three-storey terraced houses.

Selangor Dredging will fund the land acquisition through a combination of internally generated cash and bank borrowings. It expects the group’s net gearing ratio to increase by 6.93% to 36.6% after the acquisition.

Shares in Selangor Dredging, which have appreciated 38% year-to-date, closed unchanged at 57.5 sen on Tuesday, valuing the company at RM245.02 million.