Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 4): MKH Bhd's sub-subsidiary Amona Metro Development Sdn Bhd plans to acquire an 84% stake in Temara Pekeliling Sdn Bhd for RM5 million.

Amona is a subsidiary of Gabung Wajib Sdn Bhd, which in turn is a subsidiary of MKH.

In a filing with Bursa Malaysia today, MKH said Amona has entered into a master share sale agreement with Amona Land Sdn Bhd, Che Hasnadi Bin Che Hassan and Temara Pekeliling Sdn Bhd to pave the way for the acquisition.

Amona Land holds a 90% stake in Temara Pekeliling while Che Hasnadi holds the remaining 10%. Temara Pekeliling owns a 1.5-acre leasehold plot of land in Kuala Lumpur, with a 99-year lease expiring on Dec 27, 2084.

The land appears to be part of what used to house Pekeliling flats.

However, MKH did not respond to attempts made by The Edge Financial Daily to confirm this at press time.

MKH said the land is located to the west of Jalan Pahang roundabout, along Jalan Tun Razak, and is near Putra World Trade Centre, Malaysian Medical Association and Institute of Medical Research and National University of Malaysia (UKM) Kuala Lumpur Campus.

It is also served by the Titiwangsa monorail station and Titiwangsa RapidKL LRT station.

MKH said Amona Metro Development has paid the RM5 million to the vendors through internally generated funds.

The purchase consideration was arrived at on a willing buyer-willing seller basis based on the gross development value (GDV) and valuation of the land, MKH said.

The GDV of the land is approximately RM380 million, and valuation by Rahim &Co Chartered Surveyors Sdn Bhd on Feb 27, 2015 pegs the value of the land at RM78.4 million.

The acquisition will be completed once the shares are transferred, MKH added.

MKH also said Amona Metro Development and MKH will assume liabilities arising from the commodity murabahah term financing-i facility of RM50 million granted by RHB Islamic Bank Bhd to Temara Pekeliling and will offer a corporate guarantee of RM50 million in favour of the bank to secure the repayment by the customer of the murabahah facility, together with profit and other monies payable thereon to partly finance the purchase of the land.

MKH said the acquisition is in line with the group's strategy to acquire land or companies which own strategically located land banks for the group's future property development projects.

The purchase of shares is expected to contribute positively to the future earnings of the group.

It should be noted that property developer Mah Sing Group Bhd had secured the development rights for the 4.08-acre (1.63ha) parcel of land along Jalan Tun Razak-Jalan Pahang, which formerly housed the Pekeliling flats in August 2011.

Mah Sing had said its wholly owned subsidiary Grand Pavilion Development Sdn Bhd had entered into a joint venture (JV) agreement with privately held Asie Sdn Bhd and its unit Usaha Nusantara Sdn Bhd to undertake a niche development named M Sentral on the land.

The development was to sport a potential GDV of RM900 million.

Built in 1969 under the First Malaysia Plan for the low income group, Pekeliling flats has since been demolished to make way for a mixed-development project.

MKH closed 5 sen or 2.36% higher at RM2.17, with a market capitalisation of RM910.15 million.

 

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