KUALA LUMPUR (Jan 11): Hua Yang Bhd plans to develop a mixed development with a gross development value (GDV) of RM346.4 million in Mukim Plentong, Johor Bahru.

Hua Yang today signed an agreement to acquire eight parcels of freehold land totalling 73.16 acres in Johor Bahru for RM75.6 million through the purchase of Grand View Realty Sdn Bhd, a Johor-based property development company.

To be developed in eight phases, the proposed project will feature cluster homes, semi-detached homes, shop offices and homes under the Johor affordable housing scheme.

In a filing with Bursa Malaysia today, Hua Yang said it has signed a conditional share sale agreement with Yeo Ann Seck, Loh Wui Tek, Sim Cher Chuan, Phun Chin Tung, Loh Ah Kow, Chew Seng Guan, Tiew Siang Yong, Lee Ah Kong, Lee Choon Phooi, Yeo Ann Ling and Ting Chu Huat (collectively known as the vendors) to acquire one million shares in Grand View Realty.

Hua Yang said it will fund the purchase through internal funds and/or bank borrowings.

"Johor is an important market for the group and this proposed acquisition is in line with our objective to expand our operations in the southern region," said Hua Yang chief executive officer Ho Wen Yan in a separate statement today.

"As the landbank is strategically located within Iskandar Malaysia's eastern corridor, we expect demand for affordable homes and commercial properties in this area to be on the rise in the foreseeable future," he added.

The proposed acquisition is expected to be completed by the first quarter of the financial year ending March 31, 2017 and is subject to certain conditions precedent to be fulfilled.

Hua Yang now has a total undeveloped land bank of 550 acres, with a potential GDV of RM4 billion.

The stock closed one sen or 0.53% lower at RM1.87 today, for a market capitalisation of RM496.3 million.

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