KUALA LUMPUR: Melaka-based property developer Teladan Setia Group Bhd has acquired 210.4 hectares for RM95.1 million to develop affordable homes in Melaka.
Teladan Setia said its wholly-owned Asal Harta Sdn Bhd had entered into a conditional sale and purchase agreement (SPA) with Eramaju Tegas Sdn Bhd for the acquisition of three parcels of land in Jasin.
"The acquisition is in line with the group's intention to expand its presence beyond the city centre of Melaka. Prior to this, Teladan Setia has purchased a 46.94 hectare parcel of land in Jasin," it said in a statement today.
Teladan Setia also said it was in the process of completing the acquisition of another five parcels of land totalling 11.82 hectares located in Alor Gajah and central Melaka.
"With this acquisition, the company's total landbank will grow to 299.02 hectares," it said.
Teladan Setia managing director Richard Teo Lay Ban said this was an opportune time for Teladan Setia to increase its landbank.
Teo said through the proceeds raised from the recent initial public offering and a healthy cash balance prior to that, the land acquisitions would provide a strong foundation to sustain the company's long-term growth.
"These three parcels of land are in proximity with one another and we aim to develop landed residential properties priced between RM200,000 to RM400,000.
"Based on our recent market studies, we believe that landed homes remain the property of choice among the local Melaka population for the foreseeable future," he said.
The acquisition is expected to be completed by the fourth quarter of 2021.
Teo said the property market was poised for a turnaround, underpinned by the recovery of the economy following the roll-out of the vaccination program.
"Early signs of an upturn are already evident today. Based on the recent data published by the Real Estate and Housing Developers' Association, property sales in Malaysia rose around 5.9 per cent in the second half of 2020, from the same period of 2019," Teo added.