Chin Hin Group Property Bhd (Chin Hin) announced that Chin Hin Property (Melaka) Sdn Bhd (CHPMSB) purchased six parcels of leasehold lands in Bandar XLIII in Melaka Tengah from three separate vendors for RM41.9 million today (Jan 16) to be develop with an estimated gross development value (GDV) of RM1.1 billion.
CHPMSB is a wholly-owned subsidiary of BKG Development Sdn Bhd (BKGD), which in turn is a wholly-owned subsidiary of Chin Hin Group.
The purchaser (CHPMSB) entered into sale and purchase agreements (SPAs) with three vendors, MDS Developments Management Sdn Bhd (MDS), Aim Development Worldwide Sdn Bhd (ADW) and Aim Holdings Worldwide Sdn Bhd (AHW) respectively.
In a Bursa filing today, the group said the purchaser intends to undertake proposed development of residential buildings together with supporting amenities and infrastructure on the land, for sale and investment holding.
“The project is estimated to have GDV of RM1.01 billion and a gross development cost of RM792 million. It is expected to be completed six month from the completion of the proposed acquisition, and to be completed within 6 to 8 years from the completion of the proposed acquisition,” the group said.
The landbanking involved six parcels of the land are 99-year old leasehold land, expiring on different dates in 2122, with a total size of 77,921 sq m.
Three parcels of the land are from MDS, totalling 31,144 sq m, one parcel from ADW of 19,419 sq m, while the remaining two parcels are from AHW, totalling 27,357 sq m.
Chin Hin said the value of the lands is at RM84 million as per the valuation report as at October 2023 appraised by the vendor’s valuer, Knight Frank Malaysia Sdn Bhd.
“The purchase price represents a discount of approximately 50% from the current market value of the lands. The GDV of RM1.01 billion is
premised upon the planning permission to be procured for the development of the lands at the plot ratio of 4.0.
“The vendors have agreed to sell and the purchaser has agreed to purchase the lands on an ‘as-is-where-is’ basis but substantially in the same conditions as at the date of the agreements free from all encumbrances with vacant possession at the total purchase price.
“(It is) calculated at the rate of RM50 per square foot subject to all conditions and restrictions, expressed or implied, in the titles to the lands and upon all the terms and conditions of the agreements,’ it added.
Chin Hin said the proposed acquisition are in line with the overall strategy of the group to source for new landbank and expand its property development segment.
“Given the strategic location of the lands and barring any unforeseen circumstances, the board is confident that the proposed pcquisitions will contribute positively to the earnings of the group in the future.
“As such, it augurs well for the group as they are in line with the group’s strategy and at the same time, diversify its presence to Melaka,” it said.
Barring any unforeseen circumstances, the proposed acquisitions are expected to be completed on by end of June 2024, the group added.
