KUALA LUMPUR: Teladan Setia Group Bhd is buying five parcels of land in Jasin, Melaka, measuring a total of 136.9 hectares for RM117.9 million.
In an exchange filing today, the Melaka-based property developer said the company's wholly-owned subsidiary, Riverwell Resources Sdn Bhd (RRSB), signed a sale and purchase agreement (SPA) with Bakat Muhibbah Sdn Bhd for the purchase.
The acquisition is expected to be funded via a combination of internally generated funds, bank borrowings, and proceeds from its recent initial public offering.
The five parcels of land are strategically located between Tiara Melaka Golf and Country Club and Orna Golf and Country Club, just after the northeast boundary of Central Melaka.
Managing director Richard Teo Lay Ban said the company is happy to continue its landbank expansion, capitalising on the current economic market environment of attractive land prices and low-interest rates.
"Thanks to our strong cash position and healthy gearing ratio, we can make the most of the current opportunity, and these landbank expansion efforts will sustain our pipeline developments well into the future," he said in a separate statement today.
Teladan Setia announced acquisitions of landbanks totalling 890.2 acres in less than six months since it was listed on Bursa Malaysia.
At this juncture, the company's undeveloped landbank stands at 448.80 hectares.
Teo said the five parcels of land are expected to be used to develop gated and guarded townships.
"Due to the pandemic, people are spending significantly more time at home these days. Based on this, we believe landed properties with spacious living areas will continue to be highly sought after for the foreseeable future.
"Moreover, consumer buying patterns have recently been shifting towards lifestyle living and security. As such, we are diverting our focus on developments such as gated and guarded townships to meet the needs of today's consumers," he added.
Barring any unforeseen circumstances and subject to approvals from the relevant authorities, the proposed acquisition is expected to be completed by the fourth quarter of 2021.
All of Teladan Setia's developments have been in Melaka, with most of them around the central region.
With one of the lowest residential property overhangs in Malaysia, the company continues to see great potential in the state and has been active in accumulating land.