KUALA LUMPUR: TWL Holdings Bhd has signed a supplemental sale and purchase agreement to acquire three parcels of land in Petaling Jaya for RM45 million.
The company plans to develop affordable housing under the Rumah Selangorku scheme for all three parcels of land for a total gross development value (GDV) of RM624 million.
TWL managing director Shirley Tan Lee Chin said these acquisitions would accelerate the company's push into developing affordable housing projects, which aligns with the company's business strategy.
She said the acquisitions fit into the TWL's strategy to acquire land banks in strategic locations at attractive prices, given the anticipated softer property market following the Covid-19 pandemic.
"The acquisitions will add on top of the 10 ongoing property development projects with an estimated total GDV of RM2.63 billion that the company is involved in," she said in a statement.
According to Tan, the three affordable housing projects are expected to contribute positively to the company's future earnings.
Tan said the company is expected to fund the projects via internally generated funds, bank borrowings, and future fundraising exercises to be undertaken later.
"TWL will aim to expedite the progress of its current projects since the transition into the endemic phase in April this year to generate revenue and cash flows for the company.
"Aside from the affordable housing development, the company will also explore other opportunities for new property development projects with a priority on the affordable housing segment as well as the acquisition of land banks in strategic locations at attractive prices.
"With the recovery seen over the last few months and the new development projects that TWL will undertake, we are optimistic about the prospects of the company going forward," she added.