PETALING JAYA: Fajarbaru Builder Group Bhd is buying 49 per cent of Australian property development company Beulah Northcote Land Pty Ltd (BNL) for almost AU$3 million (RM8.9 million).
In a filing with Bursa Malaysia, the group said its wholly-owned unit Fajarbaru Land (M) Sdn Bhd is buying 98 ordinary shares at AU$1 each in BNL, representing 49 per cent of the total issued and paid up share capital in BNL.
The shares are being acquired from Beulah Land Holdings Pty Ltd for total AU$98 cash. BNL is a wholly owned unit of Beulah Land Holdings Pty Ltd.
Following the acquisition, Fajarbaru Land will also inject capital of AU$2.99 million (or RM8.89 million) from its own funds.
The additional capital to be injected by Fajarbaru Land is to part finance the development which includes land, development and other costs.
The acquisition is expected to be completed by April 16, 2018.
According to Fajarbaru, the acquisition will provide the group with the opportunity to expand its earnings base generated from the property development and increase its presence in the property market in Melbourne, Australia.
Under a development agreement dated December 5, 2017 entered into between BNL and Beulah Northcote Land Trust (BNLT), BNL was granted the development rights for 1.24 acres of freehold land in Melbourne, Australia.
The development comprises at least 15 residential two-storey townhouses along Merri Creek in Northcote, Melbourne. BNLT is the land owner.