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PETALING JAYA (May 6): Rivertree STF Synergies Bhd (RSSB) is undertaking a significant property portfolio restructuring exercise — acquiring two serviced apartment development companies with a combined gross development value (GDV) of approximately RM654.80 million while simultaneously divesting a near-completed mixed development project in Kuala Kubu Baharu, Hulu Selangor, in a series of transactions announced on Bursa Malaysia yesterday.
Acquisition 1: A KLCC-fringe commercial plot with RM273.6 million GDV
RSSB is acquiring Rivertree Landmark Sdn Bhd (RLSB) — which holds a 1,439 sq m (0.36 acre) parcel of vacant commercial freehold land approximately 300 metres north-east of the Petronas Twin Towers — from five vendors including RLSB's founder Datuk Leong Sai Mun for a cash consideration of RM32.72 million.
The consideration was derived from the adjusted net asset value of RLSB, which takes into account an independent market valuation of RM62 million for the land parcel (Lot 193, Section 43, Title No. Geran 35605, Wilayah Persekutuan Kuala Lumpur) by Knight Frank Malaysia, dated yesterday (May 4), using the residual method.
The land carries a development order issued by Kuala Lumpur City Hall on December 9, 2025 for a 28-storey serviced apartment building comprising 210 units (Levels 7 to 24), with an approved plot ratio of 110.34 against a permissible plot ratio of 18 under the Kuala Lumpur Local Plan 2040.
The development carries a GDV of RM273.63 million and a gross development cost (GDC) of RM188.69 million, with development expected to commence in the second quarter of 2026 and complete in the fourth quarter of 2031.
Acquisition 2: Aisya KL East in Gombak with RM381.2 million GDV
Simultaneously, RSSB is acquiring Rivertree Signatures Sdn Bhd — which holds joint development rights in a 0.8073-hectare Malay Reservation commercial land parcel located at 6 Mile Ulu Gombak, Mukim Setapak, Gombak (Selangor) — from Datuk Leong Sai Mun and Choong Yoke Far for RM13.57 million in cash.
Knight Frank Malaysia valued the joint development rights at RM26.3 million (dated May 4, 2026), forming the basis of the adjusted net asset-backed purchase consideration.
The development, branded Aisya KL East, has received conditional planning approval from Majlis Perbandaran Selayang and will be executed in two phases comprising a total of 1,304 units — including 579 serviced apartments, 520 office suites, 194 affordable apartments, 10 retail lots and a banquet hall.
The project carries a GDV of RM381.17 million and a GDC of RM343.99 million, with Phase 1 expected to commence in the second quarter of 2027 and both phases completing by the fourth quarter of 2031.
The site is strategically located approximately 500 metres from Terminal Bersepadu Gombak, which will serve as a future interchange with the East Coast Rail Link (ECRL) Gombak Station.
The disposal: Laman Lentera Kuala Kubu Baharu for RM12.97 million
Offsetting part of the acquisition outlay, RSSB is disposing of its 100% equity interest in Irama Setia Sdn Bhd (ISSB) — developer of the ongoing mixed development Laman Lentera Kuala Kubu Baharu in Hulu Selangor — to RSSB's executive chairman, Datuk Seri Rahadian Mahmud bin Mohammad Khalil, for RM12.97 million in cash.
ISSB holds 51 individual freehold titles across a 6.009-acre site zoned for building use comprising three-storey and double-storey terraced shop offices, standalone commercial buildings and double-storey terraced houses, with a GDV of RM23.35 million and GDC of RM7.74 million.
As at the valuation date of March 11, 2026, 32 out of 51 units (62.75%) remained unsold, and the development was approximately 62.5% to 100% complete across its various phases. The project is expected to be fully completed by July 2026.
The disposal is expected to result in a one-off pro forma loss of approximately RM0.39 million after deducting estimated disposal expenses, but the board noted that the transaction unlocks upfront capital to fund working capital requirements for Subject Property 1 (approximately RM6 million) and Subject Property 2 (approximately RM5 million).
Related party considerations and approvals
The proposals are classified as related party transactions under Paragraph 10.08 of Bursa's Main Market Listing Requirements, given Datuk Leong Sai Mun's and Datuk Fong Kiah Yeow's interests in the acquisitions, and Datuk Seri Rahadian Mahmud's interest in the disposal.
MainStreet Advisers Sdn Bhd has been appointed as independent adviser, and shareholder approval will be sought at an EGM. Both proposals are independent of one another and not cross-conditional. The entire exercise is targeted for completion by the third quarter of 2026.
The proposals collectively bring RSSB's development pipeline to an estimated combined GDV of approximately RM654.80 million, with projected developers' profit of approximately RM81.58 million across the two new acquisitions, positioning the group for a substantial step-up in its property development scale.
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