Tadmax expands landbank via 70% stake buy in property outfit

Tadmax expands landbank via 70% stake buy in property outfit
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KUALA LUMPUR (May 21): As part of its landbank expansion, Tadmax Resources Bhd is buying a 70% stake in a firm which is in the process of acquiring a strategically located piece of land in Cheras.  

This comes as Tadmax refocuses on property development, following its recently announced plan to exit from the RM3.3 billion Pulau Indah power plant project.

In an exchange filing today, Tadmax said it is buying the 70% stake in property outfit Bendera Juara Sdn Bhd (BJSB) from Maxim Holdings Sdn Bhd for RM233,334.

BJSB is in the midst of acquiring a 5.73-acre land in Alam Damai, Cheras for RM64.84 million or RM260 per sq ft from Syarikat Perumahan Pegawai Kerajaan Sdn Bhd (SPPK).

SPPK is an indirect 70.09% subsidiary of S P Setia Bhd, while the remaining stake is owned by the Ministry of Finance Inc.

BJSB initially planned to fund 80% of the acquisition via a bank facility that it had secured from Alliance Bank Malaysia Bhd prior to Tadmax’s proposal to come in as a substantial shareholder.

While BJSB has informed the bank of the latest development, Tadmax said there is no assurance that the bank will consent to continued availability of the facility.

“Nevertheless, the group endeavours to seek bank borrowings with acceptable terms and will constantly manage the group’s overall capital structure,” it said.

Tadmax currently has only one other piece of land – a 3.24-acre land in Petaling, which it is in the process of acquiring from SPPK for RM36.65 million.

On top of that, Tadmax has two ongoing property projects, namely Ganggarak Permai mixed development in Labuan covering 16.82 hectares, as well as the 1,512-unit Mizumi Residences condominium plus 1,520-unit affordable apartments Residensi Metro Kepong in Kepong.

“The property purchased by BJSB will enable Tadmax to replenish its land bank at the strategic location with potential growth,” Tadmax said.  

“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,” it added.

Shares of Tadmax rose half a sen or 2.33% to 22 sen today, valuing the group at RM172.43 million.