KUALA LUMPUR – BCB Bhd (KL:BCB), a prominent property developer, has announced the purchase of 59 parcels of freehold land in Batu Pahat, Johor. The total area of the acquired land measures approximately 286.82 acres and the acquisition cost is RM83.71 million. The land is being purchased from oil palm cultivator Lian Hup Seng Sdn Bhd.
In a filing with Bursa Malaysia on Tuesday, BCB disclosed its plans to transform the land into a mixed-use development. The project will feature both residential and retail components, with an estimated gross development value of RM1.1 billion. The development is projected to span over eight years and is set to commence in 2027.
“This endeavour will enable BCB to improve its market share and enhance the variety of products offered to homebuyers in Batu Pahat,” stated the company.
The acquisition is part of BCB’s strategic landbanking efforts. “This strategic move will substantially increase the land bank of BCB group and provide sustainable earnings over the medium to long term, given the favourable outlook of the property market in Johor,” the company added.
BCB plans to finance the acquisition through a combination of internally generated funds and bank financing. “The exact funding mix will be decided by the management at a later stage, considering the group’s gearing level, interest costs, and internal cash requirements for its business operations,” BCB explained.
The company expects the acquisition to be completed by 2025, barring any unforeseen circumstances.
On Tuesday, BCB’s shares closed unchanged at 42 sen, with a market capitalization of RM173.25 million.