Seacera Properties Bhd, a wholly-owned unit of Seacera Group Bhd, has proposed to acquire freehold land measuring 137.97 acres in Semenyih for RM78.13 million cash. The land will be acquired from Duta Skyline Sdn Bhd.
In a filing to Bursa Malaysia today, Seacera said the proposed acquisition is part of its strategy to continue acquiring sizeable landbank with good development potential in strategic locations to expand and strengthen its existing business in property development.
The net book value of the land from the latest audited financial statement of Duta Skyline for the financial year ended Dec 31, 2010 was RM140.313 million, it said.
The acquisition would be satisfied by way of cash from bank borrowings of about RM13 million and the balance from internally generated funds, it added.
Geographically, the land is located along the settlement area known as Kampung Sungai Pening within the Kajang-Semenyih township.
Seacera said the land is currently vacant and the proposed acquisition is for the purpose of investment in strategic location with potential for development.
"The land would be developed into a mixed development project comprising residential and commercial units," it said.
Seacera said that by a joint venture agreement dated April 5, 2005 between Duta Skyline as the joint-venture partner and Seacera Properties, the parties had agreed for the latter to undertake the construction and development of a project known as Bandar Puncak Damai comprising residential and commercial units, upon the terms and subject to the conditions contained in the agreement.
Based on the terms and conditions of the agreement, Seacera Properties has made certain payments under the agreement and the completion of the agreement is currently pending and was extended to June 30, 2012.
The company said the proposed land acquisition is expected to be completed no later than five years from the effective date. -- Bernama