KUALA LUMPUR: Chin Hin Group Property Bhd (CHGP) is buying six parcels of land in Melaka for RM41.94 million to develop a residential project with an estimated gross development value of RM1.01 billion.
The group through its indirect wholly owned Chin Hin Property (Melaka) Sdn Bhd (CHPMSB) has inked the agreement to acquire the plots from MDS Developments Management Sdn Bhd, Aim Development Worldwide Sdn Bhd (ADW) and Aim Holdings Worldwide Sdn Bhd (AHW).
In a filing with Bursa Malaysia Securities Bhd, Chin Hin said its acquisition of leasehold plots totaling 838,736 sq ft in Kawasan Bandar XLIII, Melaka Tengah was made at a substantial discount of 50 per cent from the prevailing market value, amounting to RM41.94 million.
As of October 2023, the collective market value of these plots was reported to be RM84 million.
CHGP plans to fund the proposed acquisition via external borrowing and internal funds.
The gross development cost of the project is about RM792 million.
"Given the strategic location of the lands and barring any unforeseen circumstances, the board is confident that the proposed acquisitions will contribute positively to the earnings of the company in future."The proposed acquisitions augur well for CHGP as they are in line with the group's strategy to strengthen its property development segment and at the same time, diversify its presence to Melaka," it added.