GEORGE TOWN (Penang): Tambun Indah Land Bhd (Tambun Indah), a leading property developer in mainland Penang, has received shareholder nod for the acquisition of a 84.6 hectare land in Seberang Perai for RM150 million from TPPT Sdn Bhd (TPPT).

Tambun Indah managing director Teh Kiak Seng said the proposed acquisition is in line with the group's strategy to expand its landbank in locations with growth potential and strengthen the foothold in the property market in mainland Penang.

He said the proposed acquisition will present the group further development potential in the vicinity of its flagship Pearl City township alongside synergistic opportunities.

"We have yet to determine the additional Gross Development Value (GDV) for the 84.6 hectare land.

"Suffice to say, the newly-acquired landbank will extend Pearl City's development beyond the year 2020," he said in a statement after the group's extraordinary general meeting here today.

He said prior to the latest acquisition, the group's ongoing and underdeveloped landbank had increased to 322.5 hectares from about 238 hectares previously.

"With Pearl City poised to be a self-sustaining township with residential and commercial enclaves, the additional landbank will be able to accommodate a larger population.This will lead to a better and more vibrant township," he added.

Teh said having obtained shareholders' approval, the transaction is slated for completion in the fourth quarter ending December 31, 2014.

He added that of the purchase consideration of RM150 million, RM50 million will be funded through internally-generated funds and the balance via bank borrowings.

As of June 30, 2014, Tambun Indah's ongoing projects had a total GDV of RM1.2 billion and unbilled sales of RM493.1 million which would be recognised over the next two to three years.

The company launched four projects in mainland Penang with a total GDV of RM289.8 million in the first half of 2014 and has witnessed a strong take-up for all, attesting to the continued demand for properties on the mainland.-- Bernama