KUALA LUMPUR, 4 December 2015 – Hua Yang Berhad (“Hua Yang” or the “Group”), announced today that it plans to acquire a property development company and six parcels of adjoining freehold land located within a developed community in Prai for a total purchase consideration of RM45 million.
Penang-based G Land Development Sdn Bhd, which holds the necessary approvals to develop and launch the land, is to be acquired for a total cash consideration of RM16.5 million. Subsequently, G Land Development Sdn Bhd shall acquire the six parcels of land, measuring 8.59 acres in total, for RM25 million from the landowner, GIM Standard Development Sdn Bhd.
Hua Yang aims to develop service apartments, condominiums and two-storey shop lots throughout the six parcels of land. The Gross Development Value (GDV) is estimated at RM311.0 million.
Ho Wen Yan, Chief Executive Officer of Hua Yang, said, “These proposed acquisitions underlines our commitment to expand our presence in Penang, especially within the fast-growing and well-established areas in the Seberang Prai region.”
“We also expect the demand for affordable homes and commercial properties in this area to be on the rise in the foreseeable future as a result of on-going development and investment activities. We are confident that we will be able to leverage on Hua Yang’s capabilities of building quality yet affordable homes to fully unlock the potential of this strategically located land bank,” he concluded.
The six parcels of land are located only three kilometres from the Penang Bridge and is in close proximity to several lifestyle and shopping destinations including Mydin Hypermall, Mega Mall (Butterworth), Sunway Carnival Mall, Tesco and Aeon Big. The land bank is also easily accessible via the North-South Expressway and is surrounded by amenities such as schools, banks and F&B outlets.
The Agreements are expected to be completed by fourth quarter of 2015 (Q4CY15) and the first quarter of 2016 (Q1CY16) respectively and is subject to certain Condition Precedent to be fulfilled.
The Group now has a total undeveloped land bank of 477 acres with a potential GDV of RM3.7 billion.