Talam Clarifies On Bukit Beruntung Land Deal And RM338 Million Housing Project

Talam Transform Berhad has clarified Bursa inquiy on the land JV deal between the group and two other parties, Europlus Berhad and Janajaya Murni Sdn Bhd at Bukit Beruntung 3 (BB3) in Bandar Bukit Beruntung, Rawang.

The group’s initial plan was to covert the proposed lands for 556 units of double-storey terrace houses with a land size of 22’x75’, 240 units of medium-cost apartments measuring 4.81 acres, 640 units of medium-cost apartments measuring 9.23 acres, and 990 units high-cost apartments measuring 12.69 acres. However, is said the existing approved development did not take place due to there is no demand for apartments in this location.

All the land titles involved in the proposed joint venture are freehold residential status. The Developer adds it will submit the amendment to the currently approved planning layout to the proposed development components of the Project for Land 1 and Land 2 for 1121 terrace houses instead.

The basis on how to derive at 16% of the GDV is added that it was primarily arrived at based on commercial terms negotiated and agreed between a willing buyer and willing seller, but the Company has applied the following as a guide for its negotiations :
a) The JV Entitlements for both lands amount to RM62.11 million, which is around 54% of the entire budgeted profit before tax of the Project which is significantly higher than the 25% to 30% profit sharing ratio norm in the market.
b) The JV Entitlement delivers a 25.8% return on the original investment cost of the Lands and a 118.9% return on their current net carrying value.
c) Using a discounting rate of 7.5%, the JV Entitlement yields a Net Present Value of RM19.3 million. This takes into consideration the progressive receipt of the entitlements throughout the Project.

  1. On the quesry if any independent market valuation was conducted, Talam said a fully professional, independent market valuation on the land conducted in June 2015 and submitted to the Securities Commission for the purpose of inclusion in a circular to shareholders, valued the Lands at RM34.33 million, was used as a guide.

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