The Melaka-based property developer, Teladan Setia Group via its wholly-owned subsidiary, Asal Harta (AHSB) has entered into a sale and purchase agreement (SPA) with Megan Mastika (Vendor) for the proposed acquisition of leasehold land located in the Central Melaka District with a land size of 7.54 acres, for a total consideration of RM48.5 million to be satisfied by a combination of bank borrowings and internally generated funds (Proposed Acquisition).
Barring any unforeseen circumstances and subject to approval from the Melaka State authority, the Proposed Acquisition is expected to be completed by the fourth quarter of 2023.
“The Proposed Acquisition is in line with our strategy to balance our landbank developments to cater to different market environments and demands,” Teladan Setia’s Managing Director, Mr. Richard Teo Lay Ban said.
“As we strive to enhance the value proposition in our property projects, this land is earmarked for the development of a health and wellness centre and residential service apartments,” he added.
“The land is strategically located in the heart of Melaka Town, which is opposite Mahkota Medical Centre and within walking distance to popular tourist spots including Jonker Street. As this is a prime area amongst local and international tourists, we are confident that the projects will do very well,” he stressed.
With Melaka having one of the lowest residential property overhangs in Malaysia, Teladan Setia continues to see great development potential in the state and has been active in accumulating landbanks in key locations.
The Group has acquired new landbanks in Melaka amounting to 858 acres over the past two years. Inclusive of this Proposed Acquisition, the Group’s total landbank will further increase to 1,106.9 acres, allowing the Group to scale up its property development activities in generating long-term sustainable income.
“Moving forward, we are confident of benefitting from the pent-up demand for residential properties arising from the recovery of economic activities and rebound in tourism industry. In addition, we also continue to pursue our strategy of accumulating strategic land parcels that bring potential economic value and positive future earnings to our Group,” said Mr. Richard Teo.
“Looking ahead, the demand for property developments may be softened from the headwinds of inflationary pressure and interest rate upcycle. Nevertheless, we are optimistic that our sufficient landbank inventory and well-strategized rollouts of suitable properties will allow us to attain commendable sales as we navigate through the opportunities ahead,” Teo added.
