With the demand slowly rising in the property market, many developers are replenishing their land bank for new developments. Selangor is one of Malaysia’s key economic driven states, and thus 3 developers are buying land in Selangor in April 2022 for industrial and manufacturing developments.
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Kawan Food buys 5 parcels of land in Shah Alam, Selangor
Kawan Food, a convenience food manufacturer, is buying 5 parcels of land in Shah Alam. Its wholly-owned subsidiary, Kawan Food Manufacturing Sdn Bhd (KFMSB), has signed a sales and purchase agreement (SPA) with RGP Warehouse Solutions Sdn Bhd to buy 3 parcels of land, which translates to 4.07 acres for RM28.94 million. They are in process of buying another 2 parcels of land from Perbadanan Kemajuan Negeri Selangor (PKNS), which is equivalent to 3.01 acres, for RM21.52 million.
In total, they are buying 7.08 acres to build their second manufacturing operation in Selangor to expand their cold room facility. The plant will comprise a warehouse and a cold chain distribution centre for external and internal products. They plan to use new-age technology such as robotics and automated warehouses in the plant to keep their products chilled and frozen.
On 21 April 2022, during bourse filing, Kawan Food said that the land acquisition would complete in the last quarter of 2022. The fund for the land acquisition will come from Kawan’s internal fund and external borrowing.
They believe the plant will be their new venture into product diversity for new markets. With a strategic location like Shah Alam, it will reduce their logistic cost for deliveries in the local market.
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Sunsuria Sdn Bhd buys 60.81 acres of land in Ijok, Selangor
In a bourse filing on 22 April 2022, Sunsuria Residence Sdn Bhd, a wholly-owned subsidiary of Sunsuria Bhd, signed a SPA with Superjet Revenue Sdn Bhd to buy 60.81 acres of land in Ijok, Selangor. The 99-year leasehold land with tenure up to 13 January 2101 is purchased at RM74.17 million by Sunsuria.
The property developer is accumulating strategic industrial land for property investment and development purposes. They believe this agricultural land with industrial use zoning can be a valuable addition to this purpose.
75% of the money for the land will come from bank borrowing and 25% from the internal fund. If everything goes according to plan, they hope to complete the land acquisition within 12 months.
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TWL Holdings Bhd buys 8,479 square metres of land in Seri Kembangan, Selangor
TWL Holdings Bhd, previously known as Tiger Synergy Bhd, is buying 8,479 square metres of land in Seri Kembangan, Selangor, for RM13.9 million. TWL Land Sdn Bhd, their wholly-owned subsidiary, signed a conditional SPA with Stellar Vantage Sdn Bhd for the proposed acquisition.
TWL plans to build a residential building on the land comprising 180 apartments, a car park podium and facilities such as a swimming pool, deck, gym, toilet, playground and multipurpose hall. The project will occupy a net floor area of 15,395 square metres and a gross floor area of 34,414 square metres. They estimate the project’s gross development value (GDV) to be RM84.26 million.
In the bourse filing on 25 April 2022, TWL said the project’s gross development cost (GDC) is RM55.69 million. They will fund the land through internal funds, bank borrowings and future fundraising exercises.
For the land, TWL plans to pay Stellar partly via RM500,000 cash. The remaining amount will be paid by issuing 166.05 million new TWL shares at an issue price of 8.07 sen. The issued share is at a 9.93% discount as TWL’s 5-day volume-weighted average market price of the shares up to April 22 was 8.96 sen.
After the acquisition, Stellar will hold a 4.59% stake in TWL. Out of this, Stellar’s shareholders Tong Hock Sen and Lam Su Mung will hold 90% and 10% of the equity interest, respectively.
If all goes well, the acquisition will be completed in the third quarter of 2022, and Mercury Securities Sdn Bhd will be appointed the principal advisor for the project.
TWL believes the project will positively contribute to their group’s earnings. They already applied for the development order for the project on 12 January 2022 and are waiting for approval.
Want to know the land transactions in quarter 1 of 2022? Read the article about check out the 3 land transactions in quarter 1 of 2022. And for more such news updates, keep tuned to the Guyub news portal.
