Melaka-based property developer, Teladan Setia Group Berhad via its wholly-owned subsidiary, Asal Harta Sdn Bhd (“AHSB”) has entered into a conditional sale and purchase agreement (“SPA”) with Eramaju Tegas Sdn Bhd (“Vendor”) for the proposed acquisition of three parcels of land located in the district of Jasin in Melaka with an aggregate land size of 519.8 acres for a total consideration of RM95.1 million to be satisfied by a combination of cash and bank borrowings. (“Proposed Acquisition”).
The Proposed Acquisition is in line with the Group’s intention to expand its presence beyond the city centre of Melaka. Prior to this, Teladan Setia has purchased a 116.0-acre parcel of land in Jasin, Melaka. Meanwhile, the Group is also in the process of completing the acquisition of another five parcels of land totalling 29.2 acres located in the districts of Alor Gajah and Central Melaka. With this Proposed Acquisition, the Group’s total landbank will grow to 738.9 acres.
Teladan Setia’s Managing Director, Richard Teo Lay Ban said, “This is an opportune time for the Group to increase our landbank. Justified by the lower than usual land prices and low interest rate environment, we have been more aggressive with our landbank expansion efforts in recent times. Through the proceeds raised from the recent IPO exercise and an already healthy cash balance prior to that, these landbank acquisitions will provide a strong foundation to sustain our long-term growth.”
“These three parcels of land are in proximity with one another and we aim to develop landed residential properties priced between RM200,000 to RM400,000. Based on our recent market studies, we believe that landed homes remain the property of choice among the local Melaka population for the foreseeable future.”
“Looking ahead, we believe the property market is poised for a turnaround underpinned by the recovery of the economy following the roll-out of the vaccination program. Early signs of an upturn are already evident today. Based on the recent data published by the Real Estate and Housing Developers’ Association or REDHA in short, property sales in Malaysia rose around 5.9% in the second half of 2020, from the same period of 2019,” Richard Teo added.
Barring any unforeseen circumstances and subject to approvals from the relevant authorities, the Proposed Acquisition is expected to be completed by the fourth quarter of 2021.