PJ Development buys RM124m land in Petaling Jaya

by **Cals** Sat 01 Jun 2013, 01:37

PJ Development buys RM124m land in Petaling Jaya
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Friday, 31 May 2013 18:43

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KUALA LUMPUR (May 31): PJ DEVELOPMENT HOLDINGS BHD [] has bought an industrial leasehold land in Petaling Jaya for RM124.2 million that has the potential to be re-developed for retail and service apartments.

In a filing with Bursa Malaysia, the property developer said its wholly owned subsidiary Sun-PJDC Sdn Bhd has entered into a sale and purchase agreement (SPA) with DKSH Central Services Sdn Bhd to purchase a piece of leasehold land with office and industrial buildings and warehouses in Seksyen 13.

“The Proposed acquisition will enable the group to increase its existing property development land bank and make a foray into the Petaling Jaya district. The property is located strategically and has potential for future re-development for retail and service apartments,” said PJ Development in the filing.

According to the filing, the leasehold industrial land comes with tenure of 99 years expiring on August 6, 2067. The land covers an area of 24,037.5 square metres.

“In view of the strategic location and re-development potential of the property, the board believes that the proposed acquisition will contribute positively to the future earnings of the group.”

However, PJ Development said the land purchase will not bring any material effect to its earnings for the financial year ending June 30, 2013 (FY13).

PJ Development will pay 10% of the land’s purchase price, or RM12.42 million, as deposit upon execution of the SPA. The remainder will be paid to DKSH Central Services within two months.

The property developer added the land purchase, which will be funded by internally generated funds and/or bank borrowings, shall be completed in the second half of the year.