Lagenda Properties to acquire 422-acre land in Perak for RM92m cash

• The exercise involves 42 block titles of development and agricultural land, all located within Mukim Durian Sebatang, in the Hilir Perak district of Perak.

KUALA LUMPUR (Aug 9): Lagenda Properties Bhd on Tuesday (Aug 9) announced it is acquiring a 422-acre land in Perak for RM92.4 million cash.

Taraf Nusantara Sdn Bhd — a wholly owned subsidiary of Blossom Eastland Sdn Bhd, which is in turn wholly owned by Lagenda — entered into a conditional sale and purchase agreement with Ladang Awana Sdn Bhd in relation to the proposed acquisition.

The exercise involves 42 block titles of development and agricultural land, all located within Mukim Durian Sebatang, in the Hilir Perak district of Perak.

In a Bursa Malaysia filing, Lagenda said the land is adjoining Lagenda Teluk Intan, a master planned ongoing affordable township development by the group, and is strategically located about 4km off West Coast Expressway (WCE) to its west.

Geographically, the Teluk Intan town centre is located approximately 7km due north of Lagenda Teluk Intan.

“The proposed acquisition is undertaken to acquire the subject lands which are located adjacent to the group’s ongoing affordable township development of Lagenda Teluk Intan and hence, are suitable for near-term development as future phases of the Lagenda Teluk Intan township.

“The projected gross development value (GDV) for the subject lands is expected to be around RM920 million over its development period and is expected to increase the revenue derived from Lagenda’s property development business and contribute positively to the future earnings and profitability of the group,” it said.

Subject to all relevant approvals being obtained, Lagenda noted the exercise is expected to be completed in the first half of 2023 as well as to be funded via bank borrowings and internally generated funds.

Lagenda’s share price ended unchanged at RM1.19, bringing a market capitalisation of RM996.4 million.