Avaland buys PJ land for RM49mil

New Straits Times

3 days ago

KUALA LUMPUR: Property developer Avaland Bhd is set to strengthen its foothold in the Klang Valley with the acquisition of a 0.88-hectare leasehold land in Section 13, Petaling Jaya for RM49 million.
The parcel, currently occupied by a showroom and warehouse, is earmarked for a high-rise commercial development with a projected gross development value of RM320 million.
In a filing with Bursa Malaysia, the company said its wholly owned Leisure Event Sdn Bhd had signed a conditional sale and purchase agreement with Comit Communication Technologies (M) Sdn Bhd on July 1.
The land, which has a remaining lease tenure of 50 years, will be delivered with vacant possession upon completion of the deal.
It is currently zoned for mixed-use development and benefits from proximity to key urban amenities and transport infrastructure.
Avaland said the purchase consideration was arrived at on a willing-buyer, willing-seller basis, and is supported by an independent valuation from CBRE WTW Valuation & Advisory Sdn Bhd, which appraised the land at RM49 million.
"The land's strategic location within a mature and affluent neighbourhood, coupled with excellent connectivity via major highways and public transportation, offers strong development potential," it said.
The acquisition will be funded through a combination of internally generated funds and bank borrowings, with the exact mix to be determined later.
Barring unforeseen circumstances, the deal is expected to be completed by the fourth quarter of 2025.
Avaland chief executive officer Apollo Bello Tanco said the upcoming project will be part of its AVA Prime series, which focuses on offering well-designed, high-quality homes crafted to cater to professionals and expanding families.
"We are confident that this addition to our landbank will further strengthen our development pipeline and contribute positively to the group's long-term earnings," he said.