KUALA LUMPUR (Dec 27): Affordable housing developer Hua Yang Bhd has proposed to acquire the entire stake in a property firm called Kajang Heights Development Sdn Bhd for RM70 million cash.

According to the filing with Bursa Malaysia today it said it has entered into a conditional share sale agreement with Wong Ko Seen, Wong Yoon Tsy, Bio-Energy Technology Sdn Bhd, Ria Ketara Development Sdn Bhd, Apple Rainbow Sdn Bhd and E-Hong Holdings Sdn Bhd to acquire three million ordinary shares being the entire paid-up share capital of Kajang Heights.

The acquisition of the Kajang Heights, a property development company, comes with four parcels of freehold land measuring approximately 19.76 acres in Kajang, Selangor. The proposed acquisition will follow with a proposed mix development on the said land comprising service apartments, retail units and affordable houses, the group said today.

The proposed development has an estimated gross development value of RM800 million and will be funded by internally-generated funds.

Hua Yang, however, added it is currently too preliminary to ascertain the total development cost, the expected commencement of each phases and the expected profits to be derived from the development of the property.

“The proposed acquisition is in line with the group’s objective to expand its landbank and operations into the Southern Klang Valley region as this southern corridor has grown rapidly over the course of the past decade,” said Hua Yang.

The proposed acquisition is expected to be completed by the first quarter of financial year ending March 31, 2019.

Hua Yang share price closed unchanged today at 60.5 sen, bringing it a market capitalisation of RM212.96 million.