PNB’s unit sells land to Lagenda Properties for RM398m cash

• These lands are strategically located within the proximity of multiple industrial parks and the region’s economic hub of Johor Bahru, being just 18 kilometres (km) away from Senai International Airport with its associated logistics and industrial hubs, and 39km away from Johor Bahru city centre.

KUALA LUMPUR (Feb 14): Permodalan Nasional Bhd (PNB)’s unit is selling two parcels of freehold land in Kulai, Johor, spanning 435.23 hectares, to Lagenda Properties Bhd’s 70%-owned subsidiary for RM398.21 million cash.

According to Lagenda’s stock exchange filing yesterday, the developer’s 70%-owned subsidiary Lagenda Mersing Sdn Bhd has entered into an agreement with PNB’s wholly owned unit Seriemas Development Sdn Bhd for the land purchase.

Lagenda said the acquisition is part of the group’s land banking strategies, targeting strategic locations nationwide to expand its affordable property development footprint and market presence.

The remaining 30% stake in Lagenda Mersing is owned by Misi Jutari Sdn Bhd, which is equally owned by two individuals, namely Surulhuda Md Tasir and Mohamad Aizat Eamir Ismail.

Surulhuda is also a director at Lagenda Mersing.

The land purchase, which will be funded by a combination of internally generated funds and bank borrowings, is expected to be completed by year-end, said Lagenda.

UOB Kay Hian has been appointed as principal adviser to Lagenda for this acquisition.

In a press statement, Lagenda said these lands are strategically located within the proximity of multiple industrial parks and the region’s economic hub of Johor Bahru, being just 18 kilometres (km) away from Senai International Airport with its associated logistics and industrial hubs, and 39km away from Johor Bahru city centre.

Lagenda said it plans to develop a large-scale affordable and self-sustaining township on these parcels, with over 12,000 residential units accompanied by commercial portions, having an estimated gross development value of RM4 billion.

The group said its land bank in hand spans approximately 3,726 acres as at its third quarter of 2022, and that this acquisition would expand its land bank by nearly 30% to 4,801 acres.

Lagenda is 72%-controlled by managing director Datuk Jimmy Doh Jee Ming and his brother Datuk Doh Jee Chai, who is also the group’s non-executive director, through their ownership in Lagenda Land Sdn Bhd and Doh Capital Sdn Bhd.

“This strategic acquisition will enable Lagenda to tap into a sizeable property market, as our studies have shown that there is a severe housing supply and demand mismatch in Johor, particularly in the affordable landed residential segment,” Jee Ming said on Monday (Feb 13).

Jee Ming said the size of this land is comparable to Lagenda’s established townships in Perak, namely Bandar Baru Setia Awan Perdana and Lagenda Teluk Intan, both of which are above 1,000 acres.

“These large key townships allow us to command stronger margins due to better economies of scale. 

“Lagenda has a scalable business model, and aims to achieve higher efficiency in each of our township developments, as we will always continue to evolve our township development model based on previous development frameworks, market insight and knowledge gained,” he said.