SHAH ALAM: Kumpulan Hartanah Selangor Bhd (KHSB) in talks to acquire 9.4 acres of land in Section 14, Petaling Jaya for a proposed property project with an estimated gross development value (GDV) of RM600 million.

KHSB executive chairman Datuk Abd Karim Munisar said on June 18 the product development for the project was in the final stages before it would be submitted to the local authorities.

“This development is expected to contribute sustainable returns to the group’s future earnings and more importantly, will enhance its corporate profile as the ‘developer of choice’,” he said after the AGM in Shah Alam. Currently, KHSB had total landbank of 4,000 acres, mainly in Selangor.

The company was also looking to venture into sand and minerals exploration to improve the company's cashflow, he told reporters after the AGM.

KHSB is a property arm of Selangor State investment vehicle Kumpulan Darul Ehsan Bhd (KDEB).

Abd Karim said KHSB’s subsidiary, Central Spectrum (M) Sdn Bhd was actively promoting Pulau Indah as an investment and tourism destination. Its focus would be on the industrial properties, particularly the Selangor halal hub.

Phase one of the halal hub comprised of 220 acres with GDV of RM133 million had been sold. This phase was expected to attract direct investments of RM1.05 billion in Pulau Indah and jobs to be created would be more than 2,000.

Central Spectrum took four years to sell all the land parcels in Phase 1 while business operations were expected to start in two to four years.

Abd Karim said Central Spectrum had also completed the reclamation of phase two for the halal hub last year, covering 244 acres of industrial land and could have a GDV of more than RM234 million.

“Meanwhile, negotiation with potential investors are still on-going and are expected to conclude sale of RM70 million this year,” he said.

Abd Karim also said KHSB hoped to return to the black this year on the back of encouraging sales from its Halal Hub project.

He said they were in talks with three investors including a local company, one from Singapore and the third from Italy over the sale of industrial land in Phase 2. The total sales would be about RM70 million sales.  Two other foreign investors have shown interest in buying land parcels in the halal hub.

He added the halal hub was targeted at food and palm oil-related industries. The companies operating there are  Ramly Food Industries Sdn Bhd, Federal Land Development Authority, MARA and PML Dairies.