KUALA LUMPUR (Sept 12): Property developer Crescendo Corp Bhd (CCB) is buying two plots of freehold vacant land in Johor Bahru for RM72 million cash, tapping the “good development potential” there.

In a filing with Bursa Malaysia, the group said its wholly-owned subsidiary Crescendo Landmark Sdn Bhd has entered into sale and purchase agreements (SPAs) with Bewell Realty Sdn Bhd for the acquisition.

The total gross land area is approximately 3.272 acres or 13,243 sq m, and located in the Johor Bahru city centre, near the Johor Bahru Singapore Rapid Transit System (RTS) terminal at Bukit Chagar.

The first plot of land covers an area of approximately 2.888 acres or 11,687 sq m, costing RM71.5 million, while the second plot covers an area of approximately 0.384 acre or 1,555 sq m, costing RM500,000.

“Plot 1 has been approved for the development of 1,090 units of serviced apartments with gross development value (GDV) of approximately RM726 million.

“The estimated development cost (inclusive of land cost) is approximately RM535 million which will be financed by internally generated funds as well as bank borrowings," it said.

CCB said that the development is expected to commence in the first quarter of 2024 and estimated to complete in three years’ time.

“The acquisition will increase the landbank of the CCB for property development and will contribute positively towards the CCB's long-term growth in terms of cash flows and profitability," it said.

CCB's shares closed up two sen to RM1.43 on Tuesday, giving it a market capitalisation of RM384.23 million. The counter has gained 23.4% year-to-date.