Tadmax to sell affordable housing project to Labuan Corporation for nearly RM50m

Tadmax to sell affordable housing project to Labuan Corporation for nearly RM50m
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KUALA LUMPUR (June 27): Tadmax Resources Bhd is disposing off an affordable housing project, along with other common facilities, to Labuan Corporation (PL) for nearly RM49.999 million.

In a filing with Bursa Malaysia today, the timber cum property developer said its unit, Ganggarak Development Sdn Bhd, has entered into a sale and purchase agreement with PL for the en bloc sale of Block C, Phase II housing development, dubbed Ganggarak Permai.

The project entails 260 units of affordable residential apartments, with common facilities. It would consists of two layout types and sizes, each measuring 800 sq ft and 850 sq ft per unit.

"The disposal is in the ordinary course of business of Tadmax Group," it added.

According to Tadmax, a 10% deposit will be paid on the execution of the sale and purchase agreement, and the remaining balance of 90% of the total disposal consideration shall be paid by progress payment, at the times and in the manner of the schedule of progress payment of the sale and purchase agreement.

"The disposal is not subject to any conditions precedent, whilst the development has commenced since the first quarter of 2016, and is expected to complete and vacant possession delivered within 36 months from the date of the sale and purchase agreement," it added.

With the latest disposal, Tadmax said it has cumulatively sold 780 parcels of affordable residential apartments in Ganggarak Permai, since it was launched in April 2015.

The group does not foresee a significant impact to its earnings for the financial year ending Dec 31, 2016 (FY16).

Tadmax shares closed up one sen or 2.6% at 40 sen today, for a market value of RM193.24 million.