PETALING JAYA: JKG Land Bhd’s subsidiary Bonava Sdn Bhd plans to develop a residential and commercial project on a 130-acre leasehold land in Bukit Cherakah, Selangor.
The group told Bursa Malaysia that Bonava has entered into a conditional agreement with ISY Holdings Sdn Bhd, who was alienated the land from the Petaling District Land Office in 2001. The issue document of title for the land has not been issued by the relevant authorities.
JKG said the proposal is part of the group’s objective and long term plan to invest in strategic land bank with development potential in the future.
The proposal is also in line with JKG’s strategy of expanding its land bank in the Klang Valley to further strengthen its position, market presence and gain a meaningful exposure to future upside potential of these land bank.
Subject to the terms and conditions of the agreement, Bonava will pay the consideration of RM55 million to ISY, which includes the alienation premium. ISY will bear the alienation premium up to a maximum of RM25 million.
Bonava will fund the consideration by way of cash payment through internally generated funds.
The proposal is expected to be completed within 24 months. It is expected to contribute positively to the group’s future revenue and earnings, and enhance shareholders’ value in the long term.
The proposal is subject to approvals from the Shah Alam City Council for the development of the land and if required, the Department of Environment, Natural Resources and Environment Ministry and other necessary approvals, consent, licences and permits for the development of the land.
JKG closed unchanged at 9 sen with a total of 910,300 shares traded today.
Source: The Sun Daily