Hap Seng buys KL Metropolis land for RM869m

KUALA LUMPUR: Sierra Positive Sdn Bhd, a wholly owned subsidiary of Hap Seng Consolidated Bhd, has entered into a conditional sale and purchase agreement to acquire a parcel of commercial land from TTDI KL Metropolis Sdn Bhd (TKLM) for RM868.67 million.

TKLM is a wholly owned subsidiary of Naza TTDI Sdn Bhd, which in turn is an 80%-owned subsidiary of Naza Corp Holdings Sdn Bhd.

In a filing with Bursa Malaysia today, Hap Seng said the acquisition of the land, known as Met 3 Land, Plot 7A, KL Metropolis, would be funded by internally generated funds and bank borrowings.

The 6.2ha of land which is adjacent to Malaysia International Trade and Exhibition Centre (MITEC) would enable the group to strengthen its property development presence in KL Metropolis.

The group expressed confidence that the connectivity and accessibility of the Met 3 Land would bode well for its future project launches.

“This land-banking initiative in a strategic location is expected to create sustainable revenue and profitability for the group’s property development business,” it said.

The group intends to have a mixed commercial development on the Met 3 Land with a total development cost of RM7 billion and an estimated gross development value of RM8.7 billion.

Among the risks for the proposed acquisition are market demand and conditions, authorities’ approvals, manpower shortage in the construction industry, fluctuating building materials prices, and any unforeseen delay caused by the Covid-19 pandemic. – Bernama