PETALING JAYA: Berjaya Land Bhdâs (BLand) wholly owned unit Berjaya Engineering Construction Sdn Bhd has proposed to acquire a parcel of freehold land measuring approximately 88.26 acres in Pahang for RM38.45 million from Deru Klasik Sdn Bhd.
In its Bursa filing, the group said the land is located near its Berjaya Hills Resort, and is proposing to undertake a residential development project on the land comprising terraced houses to be built over a period of three years.
The land was acquired by Deru Klasik in 2004 for RM30.76 million. The audited net book value of the Land as at Dec 31, 2019 in the books of Deru Klasik is about RM30.76 million.
âBased on the preliminary plan of the proposed development, the estimated gross development cost and gross development value are RM250.81 million and RM380.2 million respectively. The estimated gross profit is about RM129.39 million to be recognized over the duration of the proposed development,â it said.
The proposed acquisition is also expected to be an opportunity for Berjaya Engineering Construction to increase its land bank for future development.
In addition, the development cost is expected to be funded through borrowings and internal funds of the BLand Group. The proposed acquisition consideration will be funded through the groupâs internal funds and/or borrowings.
The proposed acquisition is not expected to have any material effect on the earnings, net assets and gearing of the group for the current financial year ending June 30, 2021. Nevertheless, it is expected to contribute positively to BLand Groupâs earnings once completed.
The proposed acquisition is expected to be completed in first half of 2021.
