KERJAYA Prospek Property Bhd is acquiring five parcels of leasehold lands along Jalan Puchong/Jalan Klang Lama in Kuala Lumpur for RM13.03 million to complement an existing development there.
The developer is acquiring Kerjaya Property Sdn Bhd (KPSB) which is developing a project in the area called Bloomsvale.
It has received approval from the shareholders during its extraordinary general meeting held on 23 December 2019.
Upon the completion of the corporate exercise, Kerjaya Prospek will inherit the RM1.2 billion Bloomsvale project, comprising two blocks of serviced apartments, a hotel, office suites and a shopping mall.
In a filing with Bursa Malaysia today, Kerjaya Prospek said its wholly-owned subsidiary, GSB Properties Sdn Bhd has inked the Sale and Purchase Agreements with several individuals to acquire the lands totaling 4,035 square metres.
It said the purchase consideration was arrived after taking into consideration the future development potential of the lands, assessment on the location, accessibility, suitability of the site, availability of public services, development of the surrounding area, as well as the demand and price of the property in the neighbourhood.
The developer, however, said no valuation has been carried out on the lands.
Kerjaya Prospek said the proposed acquisition will enable it to focus on its core business of property development and to expand and strengthen its landbank size.
"The lands are located nearby Bloomsvale which the company intends to develop to complement the development. Bloomsvale has received encouraging response since its launching in May 2019," it said.
Kerjaya Prospek added that it has considered the risk factor where the proposed land acquisition is subject to risks inherent to the property development industry which the company and its subsidiaries are already involved in.
"These risks may include but are not limited to, changes in economic, social and political conditions, changes in business environment, competition from other property developers, performance of sub-contractors, labour and material supply shortages, fluctuations in the prices of building materials and costs of labour, changes in tax regulations and liquidity of funds," it said.
Barring any unforeseen circumstances, the proposed lands acquisition is expected to be completed in April 2021.