KUALA LUMPUR (Sep 19): Teo Guan Lee Corp Bhd will acquire nine units of properties in the residential project known as Riana South and their hereditaments for RM5.79 million.
In a filing with Bursa, Teo Guan Lee said that Teo Guan Lee Properties (KL) Sdn Bhd, a wholly-owned subsidiary of Teo Guan Lee (KL) Sdn Bhd, which in turn is a wholly-owned subsidiary of Teo Guan Lee, had entered into nine sale and purchase agreements (SPA) with Manda’rina Sdn Bhd for the acquisition of properties located at Lot 45751, Mukim Petaling, KL, under Hakmilik No. PN 48485.
The properties are within the residential development project, Riana South, featuring twin condominium blocks offering 536 units of residential suites that are expected to be fully completed by 2021.
The note filed with Bursa said that the properties are currently under construction and will be held as investment properties with the intention to lease out for rental income.
It added that the purchase consideration was fixed by Manda’rina, the developer of Riana South and the agreed price of RM5.79 million was on a “willing buyer, willing seller” basis. The purchase consideration will be funded through internally-generated funds and external borrowings but the breakdown between the sources of funding will be decided by the management on a later date.
As of closing, Teo Guan Lee was untraded at RM1.30, giving it a market capitalization of about RM53 million.