Lagenda Properties acquires freehold land in Senawang from Land & General for RM60.2m

• The company aims to capitalise on Senawang’s rapid growth while addressing the region’s rising demand for affordable housing.

KUALA LUMPUR (March 20): Property developer Lagenda Properties Bhd (KL:LAGENDA) is acquiring six parcels of freehold land in Senawang, Negeri Sembilan, measuring 138.17 acres, for RM60.2 million.

In a bourse filing on Thursday, Lagenda Properties said its wholly-owned subsidiary Vivafirst Sdn Bhd has entered into a sale and purchase agreement with Land & General Bhd's unit (KL:L&G) Bright Term Sdn Bhd (BTSB) for the acquisition.

Lagenda Properties described the acquisition as a strategic move to expand its landbank and establish a foothold in Negeri Sembilan, marking its presence in a sixth state as part of its nationwide growth strategy.

The company aims to capitalise on Senawang’s rapid growth while addressing the region’s rising demand for affordable housing.

"Senawang is rapidly emerging as a major industrial and residential hub, with the subject lands surrounded by five established industrial parks, including the newly developed SPD Tech Valley. This growing industrial presence is expected to attract skilled workers and drive sustained housing demand," the company said.

Lagenda Properties planned to fund the acquisition through a combination of internal funds and bank borrowings.

In a separate filing, L&G said that the group acquired the six parcels on Dec 22, 2010, at a total cost of RM14.13 million.

The disposal price of RM60.2 million was agreed upon on a "willing buyer, willing seller" basis, considering BTSB’s capitalised costs of RM18.69 million, as reflected in its latest audited consolidated financial statements for FY2024.

L&G said the land sale is expected to unlock the value of its assets, improve cash flow and provide greater financial flexibility for the group.

A portion of the proceeds will be used for working capital and other property development projects, it noted.

At market close on Thursday, Lagenda Properties' shares fell one sen or 0.8% to RM1.22, valuing the company at RM1.02 billion.

Meanwhile, L&G’s shares rose half a sen or 5% to 10.5 sen, giving it a market capitalisation of RM312.2 million.

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