KUALA LUMPUR (May 21): Lagenda Properties Bhd (KL:LAGENDA) said it is buying 855 acres of freehold land in Kuala Muda, Kedah for RM148.98 million to capitalise on the demand for affordable housing.

Lagenda said it entered into a deal on Tuesday to buy the three plots of land from plantation company Hock Lean Rubber Estate Sdn Bhd to expand its land holdings and solidify the group’s position as a developer of affordable townships in Kedah.

"The subject lands are strategically located just 12km away from Sungai Petani town centre and 17km away from UiTM Pulau Pinang, Bertam campus in travel distance. Additionally, the subject lands are approximately 25km and 10km in radius from previous ventures of the company in Gurun and Sungai Petani respectively," the group said in a bourse filing.

The acquisition, which will be funded by a combination of internally generated funds and bank borrowings, is expected to be completed by the end of 2024 or early 2025, said Lagenda.

Shares of Lagenda Properties closed up one sen or 0.59% at RM1.70 on Tuesday, giving the property developer a market capitalisation of RM1.42 billion.