Thursday 28 Mar 2024
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GEORGE TOWN (Sept 10): Asian Pac Holdings Bhd's unit Taman Bestari Sdn Bhd (TBSB) is buying a 6.7-ha leasehold land in Papar Road, Papar District, Sabah, for RM21.8 million for property development.

In a filing with Bursa Malaysia, Asian Pac announced that TBSB had entered into a conditional sale and purchase agreement (SPA) to acquire the 99-year lease unencumbered land expiring on June 28, 2924 from vendor Lee Wat Lan.

"The proposed acquisition enables Asian Pac to continue undertaking property development in Sabah which is in line with our business plan to strengthen our visibility in East Malaysia," it said.

The proposed acquisition is expected to be completed in the fourth quarter for the financial year ending March 31, 2016. The company said it is in a preliminary stage of development planning of a mixed development comprising commercial and landed residential units on the said land. It added that the total development cost and expected profits from the proposed project is being finalised.

TBSB is a wholly-owned subsidiary of AGB Properties Sdn Bhd which is wholly-owned by Asian Pac.

It said the land is strategically located along Jalan Lama Penampang-Kinarut/ Papar in the fast growing town of Kinarut (accessible via Pan-Borneo Highway) with increasing population, established amenities and infrastructure.

"Accordingly, the company is confident that the proposed development on the land will be well received and will contribute positively to the future growth and earnings of the company," Asian Pac said.

The proposed acquisition and economic value of the land could be affected by inherent risks in the property sector such as general economic, business and credit conditions, demand for properties and changes in fiscal policies and governmental regulations.

"However, the company shall undertake market studies, employ appropriate business strategies and undertake project management strategies to mitigate these risks," it said.

Asian Pac remained flat at 19 sen for a market capitalisation of RM188.6 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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