Mahajaya buys 4.02ha land for RM12.12m to expand landbank

KUALA LUMPUR: MAHAJAYA BHD [] is acquiring a 4.02ha freehold land for RM12.12 million in line with the business plan to acquire additional land in its on-going development projects.

It said on Friday, July 1 that its unit Medan Damai Sdn Bhd had entered into a sale and purchase agreement with Penalbrick Systems Builders (M) Sdn Bhd to acquire the land.

Mahajaya said the land formed part of an on-going mixture of commercial and residential development project known as Bandar Damai Perdana in Cheras.

It said the acquisition would be financed via internally generated funds.

Mahajaya said the land was currently categorised as agricultural and that as the company had yet to submit applications to utilise the land for residential development, it was too preliminary to ascertain the total development cost and expected profit.

On the prospects for the acquisition, Mahajaya said the residential property sub-sector in the Klang Valley continued to receive robust demand last year, and that property remained strong with increasing demand.

“The proposed acquisition is synergistic to the Mahajaya’s business and operation and at the same time will enable the group to capture the business opportunity and to expand its development in an area of development potential,” it said.