Selangor Dredging gets interest-free one-year extension for RM63m Subang land deal

PETALING JAYA (Aug 13): Selangor Dredging Bhd (SDB) has secured an interest-free one-year extension to complete its RM63 million acquisition of commercial land in Subang, Selangor.

The property developer said in a Bursa Malaysia filing on Wednesday (Aug 12) that its wholly owned subsidiary SDB Subang Development Sdn Bhd and vendor Hectare Square Sdn Bhd have mutually agreed to extend the completion period by 12 months, from Aug 13, 2026 to Aug 12, 2027, without interest.

Under the original sale and purchase agreement (SPA), further extensions beyond the initial completion period were subject to interest of 8% per annum on the outstanding final tranche. The latest 12-month extension, however, carries no interest.

All other terms and conditions of the SPA remain unchanged.

SDB Subang Development entered into the SPA with Hectare Square on Jan 13 to acquire the 1.214ha (three-acre) freehold commercial site together with the building on it for RM63 million.

The property is held under Geran Mukim 110, Lot 541, Tempat Sungai Penaga, Mukim Damansara, Petaling district, and bears the address Lot 541, Jalan Subang 2, Taman Industri Penaga, 47620 Petaling Jaya, Selangor.

The purchase price was agreed on a willing-buyer willing-seller basis after taking into account an independent valuation of RM59 million by PA International Property Consultants (KL) Sdn Bhd dated Jan 13.

The payment structure includes RM12.6 million to be settled through a contra arrangement involving unsold units from SDB group projects, while the RM42.2 million final tranche is payable in cash.

SDB said in January that the land forms part of its efforts to add suitable properties to its land bank. It plans to develop high-rise serviced apartments on the site with an estimated gross development value of about RM507 million, although the detailed development plan has yet to be finalised.

The site is within Taman Industri Sungai Penaga and has direct access via Jalan Subang 2. SDB said it is within reasonable proximity to the USJ 7 LRT station and is designated within a transit-oriented development zone under the relevant local planning guidelines.

..........

Read about data, insights and solutions for an evolving market in EdgeProp print. Subscribe now for your free copy!