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KUALA LUMPUR (Jan 13): Selangor Dredging Bhd (KL:SDRED) is acquiring a freehold commercial land in Petaling Jaya for RM63 million to expand its land bank, with the site earmarked for a proposed development carrying an estimated gross development value (GDV) of RM507 million.
In a filing with Bursa Malaysia on Tuesday, the property developer said the group is buying the 1.214-hectare parcel in Jalan Subang 2, Taman Industri Penaga from Hectare Square Sdn Bhd. The land comes with an existing building.
Selangor Dredging noted that the purchase price is above the RM59 million market value assessed by an independent valuer, PA International Property Consultants (KL) Sdn Bhd.
The group said the acquisition forms part of its ongoing effort to identify suitable sites to expand its land bank, citing the land’s development potential and location within an established industrial and commercial area.
Selangor Dredging proposes to develop the land into a high-rise serviced apartment project with large open spaces and family-oriented facilities, although detailed development plans have yet to be finalised.
The acquisition will be funded through a combination of internally generated funds and bank borrowings, the group said, adding that the deal is expected to be completed by the second quarter of the financial year ending March 31, 2027.
Shares of Selangor Dredging closed up three sen or 6.38% at 50 sen on Tuesday, for a market capitalisation of RM213.1 million.
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