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KUALA LUMPUR:UEM Land Holdings Bhd is buying two parcels of agricultural land from Inch Kenneth Kajang Rubber Plc for RM268.5mil to be developed into a township in Bangi, Selangor.It told Bursa Malaysia today it was buying the 463.51 acres of land in Semenyih, Selangor for a cash consideration of RM13.30 per sq ft.
It said the indicative market valuation of the land as appraised by Messrs Raine and Horne International Zaki + Partners Sdn Bhd was of RM248.3mil or RM12.30 per sq ft.
The group had stated "the scale of the Bangi land, with a total land area in excess of 450 acres, would provide the opportunity for UEM Land to develop a comprehensive and integrated township".
The group said it had surplus cash of RM351.5mil as at Sept 30, 2010 and the board intends to fund the requirements through internally generated funds and/or bank borrowings.
The Bangi land is adjacent to the Alam Sari township and Universiti Kebangsaan Malaysia, and is within the vicinity of Bandar Baru Bangi.
Whilst the Bangi land is currently classified for agricultural land use and is an oil palm plantation estate, approval for conversion to mixed development status was obtained by IncKen in 2007.
It added that the proposed acquisition was part of its strategic plan where one of the objectives was to secure at least one new township development outside Nusajaya by 2015.
This was to enable the group to diversify its development portfolio and revenue sources outside Nusajaya in order to achieve its long term growth strategy.
The scale of the Bangi Land, with a total land area in excess of 450 acres, would provide the opportunity for UEM Land to develop a comprehensive and integrated township, it said.
By The Star
