Tambun Indah plans RM180m project in Jelutong, Penang

KUALA LUMPUR: Tambun Indah Bhd is acquiring property development company Premcourt Development Sdn Bhd for RM5.5 million which is slated to undertake a project with gross development value (GDV) of RM180 million in Bandar Jelutong on Penang island.

Tambun Indah said on Monday, Aug 29 it had signed a share purchase agreement with Messrs. Siram Permai Sdn Bhd and Tah-Wah Sdn Bhd to acquire Premcourt’s entire equity of 250,000 shares of RM1 each.

Premcourt’s main business is property development. The directors of Premcourt are Teh Kiak Seng, Datuk Hong Yeam Wah and Teh Theng Theng (alternate to Teh Kiak Seng).

Tambun Indah said the RM5.50-million price tag was a premium of about RM1.76 million or 47.06% to the audited net tangible asset of Premcourt. It said it was also adjusted for the assignment of debts by the vendors to Tambun Indah of about RM3.74 million.

“Tambun Indah is acquiring Premcourt at a premium mainly due to the development potential of the joint venture agreement (JVA) land pursuant to the JVA which is expected to contribute an estimated gross development profit of approximately RM30 million to the Tambun Indah group,” it said.

To recap, on Aug 30, 2010, Premcourt had signed a JVA with Ewe Kheng Hean @ Ewe Kheng Heang, Tan Teik Hin and Ong Keng Poh as trustees for and on behalf of Lin Geah Seah – Goh Hian Tai Teh (landowner), to develop a piece of freehold land in Bandar Jelutong.

The 182,680 sq ft (4.19 acres) of land is for a proposed mixed strata development project.

“The estimated GDV and cost for the potential development of the JVA land is approximately RM180 million and RM150 million respectively resulting in an estimated gross development profit of approximately RM30 million,” it said.

Tambun Indah said the audited net assets of Premcourt based on the audited accounts of Premcourt for

the financial year ended (FYE) Dec 31, 2010 was RM240,487 and the audited loss after taxation of Premcourt for the FYE Dec 31,2010 was RM9,513.