Tiger Synergy buys Cheras land for RM11.2m for condo project

by **Cals** Tue 07 Apr 2015, 08:39

Tiger Synergy buys Cheras land for RM11.2m for condo project

By Fatin Rasyiqah Mustaza / theedgemarkets.com | April 6, 2015 : 7:44 PM MYT

KUALA LUMPUR (Apr 6): [size=14]Tiger Synergy Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) is buying a piece of freehold land measuring some 0.8ha in Cheras, Selangor for RM11.20 million to develop a 120-unit condominium.

In its announcement on Bursa Malaysia today, the wood-based products manufacturer and property developer said its wholly-owned unit Promosi Juara Sdn Bhd entered into a sale and purchase agreement (SPA) with the registered owner of the land Chua Kim Hock for the said acquisition today.

According to the SPA, the agreement is conditional upon the vendor, at his own cost and expenses, secure the prior written approval from the related authorities to develop the land into a residential development within three months from the date of the agreement.

The proposed development is a 16-storey one block condominium which will house 120 units, together with a four storey car park and four units of kiosks for common facilities as well as a basement carpark.

"The land is acquired for development to generate revenue and earnings to the company. It is held as land for development due to the development in the vicinities and is located in a strategic high growth area," said Tiger (fundamental: 1.20; valuation: 1.20).

"The board of directors of Tiger is optimistic that prospect of the land is positive and the proposed acquisition will contribute positively to the future growth and earnings to the company," it added.

The purchase consideration of RM11.20 million will be funded through internally generated funds and bank borrowings.

The proposed acquisition is expected to be completed during the second quarter of the financial year 2016.
Tiger closed at 13 sen today, down half sen or 3.7%, which gives it a market capitalisation of RM100.64 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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