PETALING JAYA: Teladan Setia Group Bhd’s wholly owned subsidiary Riverwell Resources Sdn Bhd has entered into a sale and purchase agreement with Bakat Muhibbah Sdn Bhd to acquire five parcels of land totalling 136.9 hectares (338.3 acres) in Jasin, Malacca, for RM117.9 million.
The acquisition is expected to be financed with a combination of internally generated funds, bank borrowings, and proceeds from its recent initial public offering.
The five parcels of land are expected to be used for the development of gated and guarded townships. The plots are located between Tiara Melaka Golf & Country Club and Orna Golf & Country Club, just after the northeast boundary of Central Melaka, a few minutes drive from the Melaka International Trade Centre.
Teladan Setia managing director Richard Teo Lay Ban said people are spending significantly more time at home these days due to the Covid-19 pandemic.
“Based on this, we believe landed properties with spacious living areas will continue to be highly sought for the foreseeable future. Moreover, consumer buying patterns have recently been shifting towards lifestyle living and security. As such, we are diverting our focus on developments such as gated and guarded townships to meet the needs of today’s consumers,” he said in a statement today.
All of Teladan Setia’s developments are in Malacca with most of them around the central region. With one of the lowest residential property overhangs in Malaysia, the property developer continues to see great potential in the state and has been actively accumulating land. The group announced the purchase of a parcel of a piece of 519.8-acre land in Jasin in April.
Teo said the group is capitalising on the current market environment to expand its landbank due to attractive land prices and low interest rates.
“Our strong cash position and healthy gearing ratio enable us to make the most of the current opportunity and these landbank expansion efforts will sustain our developments in the pipiline.”
In less than six months after the group was listed on Bursa Malaysia, it has announced acquisitions of land totalling 890.2 acres. At this juncture, the group’s undeveloped landbank stands at 1,109 acres.
Barring any unforeseen circumstances and subject to approvals from the relevant authorities, the proposed acquisition is expected to be completed by the fourth quarter of 2021.