Berjaya Land (BLand) Bhd is expanding its property development activities to include a new housing project with an estimated gross development value of RM380.20 million in Pahang.
The developer, via its wholly-owned subsidiary, Berjaya Engineering Construction Sdn Bhd (BEC) is acquiring a parcel of freehold land, measuring about 36 hectares near Bukit Tinggi in Bentong for RM38.45 million, or RM10 per square ft, in cash.
It said that the proposed acquisition is in line with the BLand group's focus on expanding its land bank and increasing its potential GDV from its available land banks.
BLand, a subsidiary of Berjaya Corporation Bhd is one of the largest land developers in Bukit Jalil.
It has development projects in Penang and outside of Malaysia such as in Japan.
BLand said in a filing with Bursa Malaysia yesterday that the land in Bentong is located within close proximity to Berjaya Hills Resort and Genting Highlands and presents the potential for residential development.
Berjaya Hill Resort, nestled within the tropical rainforest and a popular tourist destination, is developed and owned by the Berjaya group.
Perched 820 meters high on a mountain ridge, the integrated resort development features Colmar Tropicale - a French-themed hotel and cultural village inspired by the traditional architecture of Alsace region in France.
It also encompasses a Japanese Village, The Chateau Spa & Organic Wellness Resort, and an 18-hole championship golf course.
BLand said that it is proposing to build terraced houses over a period of three years on the land in Bentong.
The developer said that based on the preliminary plan of the proposed project, the estimated gross development cost is RM250.81 million.
"The estimated gross profit is about RM129.39 million to be recognised over the duration of the proposed development," it said.
BLand said that BEC has entered into a sale and purchase agreement with property investment firm Deru Klasik Sdn Bhd for the land acquisition.
According to the filing, Deru Klasik had acquired the land in 2004 for RM30.76 million.
Berjaya Group founder Tan Sri Vincent Tan Chee Yioun is the controlling shareholder of Deru Klasik with a 75 per cent stake. The current directors of the company include his sister Tan Choon Lui, and his daughter, Chryseis Tan Sheik Ling.
The filing showed that Chryseis, an executive director and a shareholder of BLand, owns a five per cent stake in Deru Klasik.
BLand said the proposed acquisition represents an opportunity for BEC to increase its land bank for future development.
In view of the strategic location and earnings potential of the proposed development, the proposed acquisition is expected to generate economic benefits and contribute positively to the future earnings of the Berjaya Land group, it said.