Boustead’s Property Division Acquires Prime Land in Heart of KL
KUALA LUMPUR, December 22, 2017 - Boustead Holdings Berhad (BHB) is set to increase its total assets and expand its land bank with the significant addition of a prime parcel of freehold land located along Jalan Cochrane in Kuala Lumpur. BHB entered into a sales and purchase agreement with Lembaga Tabung Angkatan Tentera (LTAT) today, for the acquisition of the development land measuring 6.59 acres.
The total cash consideration for the proposed acquisition amounts to RM143.5 million, which was based on a “willing-buyer willing-seller” basis, after taking into consideration the market value of the land as appraised by independent valuers. The total market value of the land was marked at RM144 million, representing a RM0.5 million discount in the purchase consideration.
BHB will be acquiring the Jalan Cochrane land through its wholly-owned subsidiary, Mutiara Rini Sdn Bhd. The acquisition will be fully funded by the proceeds of the Group’s rights issue exercise, which was completed in June 2016.
The land has been earmarked for a high-rise residential development, with an expected gross development value of approximately RM1.145 billion.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “Given its strategic location in the heart of the city, not to mention its close proximity to public transportation as well as key shopping areas, the Jalan Cochrane land represents significant potential and value in terms of a residential development.”
“BHB’s strong track record in the property development sector will certainly enable us to leverage on this potential. Indeed, the Group’s Property Division has already successfully completed existing projects within the same vicinity, including the MyTOWN Shopping Centre and the soon-to-be-launched One Cochrane Residences. We are confident that the acquisition of this land will enable us to further accelerate our growth strategy for the Division in the long-run.” concluded YBhg Tan Sri Dato’ Seri Lodin.
In a separate announcement to Bursa Malaysia Securities Berhad on the same day, BHB informed the regulator that the Company had provided advances of RM30.8 million to IRAT Properties Sdn Bhd, an equal 50% joint venture company of BHB and LTAT.
The said financial assistance is payable upon demand by BHB and is subject to the interest of 6% per annum, calculated on monthly basis and to facilitate the ordinary course of business of IRAT.
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 90 subsidiaries, associate companies and joint ventures, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group's operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading & industrial and pharmaceutical. As at 30 September 2017, Boustead Holdings Berhad’s paid-up capital was RM2.7 billion while its shareholders’ funds stood at RM5.9 billion. Market capitalisation is currently in the region of RM5.9 billion.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
on behalf of: Boustead Holdings Berhad
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