KUALA LUMPUR (Sept 21): Scientex Bhd is acquiring 202 acres of land in Pulai, Johor, for RM185 million, bringing its total landbank to more than 5,700 acres.
This will sustain the group for over 10 years, Scientex said in a statement today.
The group said its wholly-owned subsidiary Scientex Quatari Sdn Bhd is acquiring the eight parcels of freehold land, located near the group’s existing developments, from Lee Pineapple Company (Pte) Ltd.
“This latest landbanking exercise in Johor would allow us to deliver more affordable homes to meet the rising demand. We are constantly on the lookout for suitable landbanking deals, to ensure we continue building a sustainable pipeline of future launches, as well as further expand our affordable homes footprint across various states in Peninsular Malaysia,” said Scientex CEO Lim Peng Jin.
The acquisition is conditional upon the Estate Land Board’s approval, said Scientex, adding that it expects to complete the acquisition in the first half of 2021.
The purchase will be financed by internally generated funds and bank borrowings, it added.
The newly acquired land would also complement the group’s 661 acres of land in Pulai, comprising mixed residential and commercial developments, which have a completed gross development value (GDV) of RM900 million and future GDV of RM4.4 billion.
The lands are surrounded by Sri Pulai Perdana 2, Bandar Pulai Jaya, Bandar Baru Kangar Pulai, Taman Pulai Mutiara and Taman Pulai Mutiara 2.
“Despite the challenging economic climate at present, we are seeing resilient demand for affordable housing. Our prospects in this space are further bolstered by recent interest rate cuts by Bank Negara Malaysia, which should sustain homebuyers’ sentiment and promote greater homeownership,” said Lim.
Scientex’s share price rose 40 sen or 4.21% to close at RM9.90, giving a market capitalisation of RM5.11 billion.