KUALA LUMPUR (Feb 16): TSR Capital Bhd proposes to buy a private company that owns a piece of land in Mutiara Damansara, Petaling Jaya that has been approved for the development of an office building, for RM48.1 million.

The builder cum property developer said its wholly-owned subsidiary TSR Mix Sdn Bhd (TMSB) has signed a sale and purchase agreement with Datuk Seri Meer Sadik Habib Mohamed and Datin Seri Zarida Noordin for the acquisition of the entire equity of Satu Kahwin Sdn Bhd (SKSB).

SKSB is the registered owner of a freehold land with commercial status, measuring about 5,000 square metres, that is currently vacant.

TSR said TMSB will acquire the land together with a development order for two blocks of office towers — comprising 19 storeys and 11 storeys — together with a four storey-basement carpark.

The preliminary estimates of the gross development value of the project is RM230 million.

“We currently intend to partially sell or lease the buildings to be developed on the land, where 70% of the lettable space is targeted to be sold and the remaining may be kept for rental income and capital appreciation,” TSR said in a statement today.

“Since the land is adjacent to the company’s existing business operation located at Menara TSR, the value of the development and Menara TSR may be further enhanced, when both buildings are connected via the carpark and the lobby area once completed,” it added.

Nevertheless, TSR said the launch of the development will depend on market conditions.

TSR expects to complete the deal, which requires its shareholders’ approval, by the second quarter of 2016.

TSR rose two sen or 4% to 52 sen on Bursa Malaysia today, giving it a market capitalisation of RM90.71 million.