News & Articles BCB acquires 54.7-acre Kluang land for RM31m
BCB acquires 54.7-acre Kluang land for RM31m
15 Oct 2024
KUALA LUMPUR (Oct 14): Property developer BCB Bhd (KL:BCB) has acquired four parcels of freehold land in Kluang, Johor, spanning a total of 54.71 acres, for RM31 million, cash.
BCB said it has signed four sale and purchase agreements with Country Green Realty Sdn Bhd for the acquisition, according to its bourse filing on Monday. BCB intends to develop residential units and retail shops on the site that is expected to have a gross development value of RM245 million upon full completion.
The construction is anticipated to commence in the financial year 2027, with the project set to span over a five-year period, BCB noted.
This follows BCB’s earlier purchase in May of 59 parcels of freehold land in Batu Pahat, Johor, measuring 286.82 acres, for RM83.71 million from oil palm cultivator Lian Hup Seng Sdn Bhd.
BCB plans to finance its current land acquisition through a combination of internally generated funds and bank borrowings, with the final funding structure to be determined by management at a later date.
The purchase price of RM13 per square foot was agreed upon on a "willing-buyer, willing-seller" basis, free from encumbrances, through direct negotiations, BCB noted.
"The exact funding mix will be decided by the management at a later stage after taking into consideration the group’s gearing level, interest costs as well as internal cash requirements for its business operations," BCB said.
The company expects to complete the land acquisition by the financial year ending 2025.
Shares in BCB closed one sen or 3.17% higher at 32.5 sen on Monday, giving the company a market capitalisation of RM131.97 million. Year-to-date, BCB’s stock has risen by 12.07%.
BCB said it has signed four sale and purchase agreements with Country Green Realty Sdn Bhd for the acquisition, according to its bourse filing on Monday. BCB intends to develop residential units and retail shops on the site that is expected to have a gross development value of RM245 million upon full completion.
The construction is anticipated to commence in the financial year 2027, with the project set to span over a five-year period, BCB noted.
This follows BCB’s earlier purchase in May of 59 parcels of freehold land in Batu Pahat, Johor, measuring 286.82 acres, for RM83.71 million from oil palm cultivator Lian Hup Seng Sdn Bhd.
BCB plans to finance its current land acquisition through a combination of internally generated funds and bank borrowings, with the final funding structure to be determined by management at a later date.
The purchase price of RM13 per square foot was agreed upon on a "willing-buyer, willing-seller" basis, free from encumbrances, through direct negotiations, BCB noted.
"The exact funding mix will be decided by the management at a later stage after taking into consideration the group’s gearing level, interest costs as well as internal cash requirements for its business operations," BCB said.
The company expects to complete the land acquisition by the financial year ending 2025.
Shares in BCB closed one sen or 3.17% higher at 32.5 sen on Monday, giving the company a market capitalisation of RM131.97 million. Year-to-date, BCB’s stock has risen by 12.07%.
Source: The Edge Malaysia
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