KUALA LUMPUR (April 22): Iskandar Waterfront City Bhd (IWC) has proposed to acquire three adjoining parcels of freehold land in Johor Bahru, Johor, which measures a collective 67.5 acres for RM156 million or RM53 per sq ft, for a proposed mixed development with a gross development value (GDV) of RM629 million.

IWC, in a statement to Bursa Malaysia today, said the proposed mixed development on the land, which is situated within the development region of Iskandar Malaysia, has an indicative gross development cost of approximately RM480 million and will consist of residential units, Rumah Mampu Milik Johor and shop houses.

However, it said the proposed development is still at an “early stage of planning”, and that there is no “confirmed detailed information” at hand.

Its statement also said IWC's (fundamental: 0.85; valuation: 0.3) wholly-owned unit Bayou Management Sdn Bhd has entered into a conditional sale and purchase agreement with Bahagia Wangsa Sdn Bhd (BWSB) for the said acquisition, today.

IWC further said the proposed acquisition is in line with its growth strategy to accumulate “new suitable land” as land bank, and to enhance future earnings and revenue.

IWC is expected to fund the proposed acquisition via bank borrowings and/or internally-generated funds. The proposed acquisition will also require approvals from its shareholders and relevant state authority.

Barring any unforeseen circumstances, the proposed acquisition should be completed by the fourth quarter this year, IWC said.

It added that the proposed acquisition will also complement nearby parcels of land being developed by the group’s sister company, Danga Bay Sdn Bhd, also known as Danga Heights.

IWC closed down 1 sen or 0.8% at RM1.32, giving it a market capitalisation of RM884.04 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.)