CEO Morning Brief

TWL Holdings to Buy Land in USJ, Putra Heights to Develop Affordable Housing

Publish date: Fri, 05 Aug 2022, 08:43 AM
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TheEdge CEO Morning Brief
TWL Holdings to buy land in USJ, Putra Heights to develop affordable housing

KUALA LUMPUR (Aug 4): TWL Holdings Bhd, formerly known as Tiger Synergy Bhd, is buying three plots of freehold land in UEP Subang Jaya (USJ) and Putra Heights for RM45 million.

The vendors are INTA Development Sdn Bhd and Sime Darby Property (Bukit Raja) Sdn Bhd, a wholly-owned subsidiary of Sime Darby Property Bhd, said TWL Holdings in a filing with Bursa Malaysia.

The group said its 80%-owned indirect subsidiary Tinta Kaca Development Sdn Bhd is buying 22,234 sq metres of land for RM10 million, while another 80%-owned indirect subsidiary Tinta Heights Development Sdn Bhd is acquiring a 23,237 sq metre plot for RM12 million. Both these plots are located in USJ.

The group’s 70%-owned indirect subsidiary Alma Land Development Sdn Bhd will be buying a 35,440 sq metre plot of land in Putra Heights for RM23 million.

The remaining stake in these TWL’s indirect subsidiaries are all owned by INTA.

TWL said it is acquiring the assets to develop affordable housing under the Rumah Selangorku scheme, with collective gross development value of RM623.7 million and gross development cost of RM523.5 million.

The loss-making company is planning to fund these land acquisitions via internally-generated funds, bank borrowings and/or future fundraising exercises to be undertaken.

“The company is in the midst of planning a rights issue exercise, details of which shall be announced in due course,” it said.

TWL said these projects are expected to contribute positively to its future earnings premised on their strategic location in the established townships of USJ and Putra Heights.

The group said these projects are expected to commence in the first quarter next year, and be completed in the fourth quarter of 2028.

TWL’s shares closed unchanged at 6.5 sen per share, giving the group a market capitalisation of RM242.46 million.

Source: TheEdge - 5 Aug 2022

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