Meda Inc buys 10.5-acre Cheras land for RM34.3 mil

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KUALA LUMPUR (Oct 20): Meda Inc Bhd (Meda Inc) has proposed to acquire a piece of freehold land measuring about 42,491.925 sq m or 10.5 acres in Cheras for RM34.3 million.

According to a filing with Bursa Malaysia today, Meda Inc and Global Jubilee Sdn Bhd (Global) have jointly entered into a sale and purchase agreement (SPA) with Natwest Trading Sdn Bhd (Natwest) for the above property.

Under the SPA, Meda Inc will acquire 39,254.45 sq m of the land for RM31.69 million while Global will acquire the remaining 3,237.48 sq m of land for RM2.61 million.

Meda said the price for the land was arrived on a “willing buyer willing seller basis” after taking into consideration the development potential of the property.

“The purchase price will be satisfied entirely in cash, which will be funded by internally generated funds of Meda, and bank borrowings. The exact mix of borrowings and internally generated funds will be decided by the management of Meda at a later date after taking into consideration the gearing level, interest cost and cash requirement of its business,” it said.

Meanwhile, Global is currently a dormant company. Its directors and shareholders are Sing Soo Weng and Kok Yee Meng; each holds a 50% stake in Global.

Meda Inc said the proposed development plan for the property, which is still preliminary at this juncture and may be subject to further changes, shall comprise of a condominium.

"The proposed development is estimated to have a potential gross development value of approximately RM252 million. We will be submitting the proposed development plans to relevant authorities for approval," it said.

Subject to gaining the approvals, the project is expected to launch in the second quarter of 2015 (2Q15)," it added.

Meda Inc said the acquisition is inline with its business expansion strategy as the group is consistently on the lookout to acquire prime land for development.

Shares of Meda Inc inched down 1 sen to close at 63.5 sen today, giving it a market capitalisation of RM306.90 million.