LSH Capital proposes RM17.4mil land acquisition for Titiwangsa serviced apartment project
KUALA LUMPUR: Lim Seong Hai Capital Bhd (LSH Capital) has proposed to acquire three parcels of land along Persiaran Titiwangsa 3 in Kuala Lumpur, for RM17.4mil cash.
LSH Capital, in a filing with Bursa Malaysia, said its wholly-owned subsidiary, Lim Seong Hai Development Sdn Bhd (LSH Development), entered into a sale and purchase agreement (SPA) with Lim Seong Hai Holdings Sdn Bhd (LSH Holdings) to acquire Lot 19, a freehold parcel measuring approximately 910.51 sqm, for RM7.6mil.
LSH Development also entered into a conditional SPA with LSH Holdings to acquire Lot 20009, a leasehold parcel of about 286 sqm, for RM2.6mil.
Separately, it also entered into an SPA to acquire Lot 20, a freehold parcel measuring approximately 1,241.84 sqm, from the executors of the estate of the late Lim Tee Hui for RM7.2mil.
The proposed acquisitions are expected to be financed fully via internally generated funds.
LSH Development intends to amalgamate and submit a development order consisting of all the lands to the relevant authorities, including to Kuala Lumpur City Hall, to undertake a property development project consisting of approximately 240 units of serviced apartments.
The application for approval is expected to be submitted in the second half of 2025.
'The proposed Titiwangsa Development is expected to have a gross development value (GDV) of RM130mil and, subject to obtaining all relevant approvals, the construction for the project is expected to commence in 2027 and to be fully completed by 2030,' it said.
The LSH Capital Group is also expected to be appointed as the design and build contractor for the proposed Titiwangsa Development with an estimated GDV of RM103.1mil.
The cost of development for the proposed Titiwangsa Development will be funded via a combination of internally generated funds, bank borrowings and/or sale proceeds from the proposed Titiwangsa Development itself after taking into consideration LSH Development's gearing level and working capital requirement.
LSH Capital said the proposed acquisitions would also allow the group to expand its construction portfolio and orderbook when the proposed Titiwangsa Development commences.
'With the addition of the proposed Titiwangsa Development, the group's portfolio will also carry an additional property development project, thereby increasing the total property development GDV of the group to RM1.68bil which is expected to provide earnings visibility until 2029.
'In addition, the proposed Titiwangsa Development is also expected to contribute to LSH Capital Group enlarged secured construction orderbook amounting to RM2.09bil with an overall outstanding orderbook of RM1.54mil,' it said.
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