KUALA LUMPUR (Nov 2): The Kuala Lumpur City Hall (DBKL) has sold a parcel of land in Cheras to Tadmax Resources Bhd's 55%-owned unit for RM37.4 million.

In a bourse filing, the group announced that its 55%-owned subsidiary Builtamont Development Sdn Bhd signed a sale and purchase agreement last Friday with the DBKL to acquire leasehold land that measures 10,529 sq m or 2.6 acres.

The land is located on the east side of Jalan Desa Aman 1, off Jalan Cheras, Taman Desa Aman, Cheras.

Tadmax said the acquisition will enable it to replenish its land bank.

"This is in line with Tadmax's aim to further strengthen its foothold in the property development and construction activities and to generate long-term sustainable income.

"The group presently has two ongoing property development projects which represent all its existing land bank," it said.

Tadmax seems to be on a land acquisition trail.

The company said in the filing that it is currently in the midst of acquiring two pieces of land, both located in Cheras, Kuala Lumpur, for future developments.

"However, as at the date of this announcement, the acquisitions have yet to be completed as both are pending the payment of the balance purchase consideration.

"For each of the two pieces of land, completion is envisaged in November 2020 and January 2021 respectively," it noted.

The purchases will be funded through a combination of bank borrowings and internally generated funds and are expected to be completed within six months.

Tadmax shares finished 1.89% or half a sen lower at 26 sen, valuing it at some RM203.78 million.