Teladan Setia to build a mixed-use integrated urban development in Jasin starting next year
Published: Wednesday, 10 November 2021
The developer is proposing to acquire the lands in Ayer Keroh for RM117.9 million in cash from Bakat Muhibbah Sdn Bhd (BMSB), a development company.
Teladan said in a circular to shareholders today that its wholly-owned subsidiary, Riverwell Resources Sdn Bhd, had entered into a conditional sale and purchase agreement (SPA) with BMSB for the proposed land acquisition on September 6, 2021.
"As at the date of this circular, it is too preliminary to ascertain the exact total gross development value, development cost, the expected commencement and completion dates of the development and the expected profits to be derived from the development of the lands," Teladan said in a stock exchange filing.
Teladan stated that it will carefully select the type of property products to be built to meet the demands and needs of end purchasers, to increase or improve the overall attractiveness and success of future development on the lands.
It plans to hold an extraordinary general meeting on November 26, 2021, to seek shareholder approval for the proposed acquisition.
Teladan said it would hire an architect and a consultant after shareholder approval to begin development planning and cost projections for the lands.
The proposed acquisition could be completed by the third quarter of 2022 if no unexpected circumstances arise, according to the company.
"We expect to submit the planning permission to the relevant authorities by June 2022," said the group.
Teladan stated that the acquisition of the lands is intended to replenish the group's land bank in areas with high growth potential and to scale up its property development activities for long-term sustainable income.
The group also intends to capitalise on market acceptance for its existing development and economies of scale, as well as to strengthen its property development presence in Jasin.
According to a valuation report published in September by CBRE | WTW, house prices in Jasin are expected to rise in line with the Melaka Housing Price Index, providing some hope for the area's residential development.
Teladan said the land parcels that it intends to purchase are situated between Jasin town, Melaka city, and Muar.
It claimed that the lands are highly visible and easily accessible from Malacca city, Ayer Keroh, Durian Tunggal, Bemban, Serkam, Merlimau, and Muar.
"This will allow us to deploy human capital more effectively, allowing our group to begin planning and development more quickly," it said.
In addition, the lands are close to three golf courses, which may provide additional attractions and selling points when compared to other developments in the area.
Teladan stated that the group's expertise, experience, track record, and knowledge in the residential property construction and property development sectors will enable it to respond quickly to any future development opportunities.
"The proposed acquisition is expected to contribute positively to our group. However, there can be no assurance that the anticipated benefits arising from the development of the lands will fully materialise in the future, and even more so with the uncertainties and restrictions arising from the Covid-19 pandemic.
"As a result, the expected benefits of the proposed acquisition may be insufficient to offset the cost associated with the proposed acquisition," it said.
In terms of prospects, Teladan stated that the Board believes it has been presented with an opportunity to acquire strategically located land that will enable the group to carry out its proposed development plans.
Facebook: CiD Realtors, Low Tung, Property Malaysia, Malaysia Real Estate Investment, Property Investment Group Malaysia
Instagram: CiD Realtors
Twitter: CID Realtors
