KUALA LUMPUR: Chin Hin Group Property Bhd (CHGP) intends to start a new real estate development in Penang.
An agreement has been signed by its wholly-owned subsidiary Chin Hin Property (Penang) Sdn Bhd and Ivory Gleneary Sdn Bhd for the purchase of a freehold land parcel for RM40 million.
The company told the stock exchange yesterday that it acquired a 0.49-hectare (ha) plot of land, which forms part of a 4.922-hectare parcel of land held under a master title.
The purchase price is anticipated to be paid for with a mix of bank borrowings and internally generated funds, the exact amounts of which will be decided later after the group's gearing level, interest rates, and cash reserves have been taken into account, it said.
"Given the strategic location of the land and barring any unforeseen circumstances, the board is confident that the development will contribute positively to the earnings of CHGP in the future.
"As such, the proposed acquisition augurs well for the group, as it is in line with the group's strategy to strengthen its property development segment and, at the same time, diversify its presence in Penang," it added.
Barring any unforeseen circumstances, the deal should close in the first quarter of 2025.