Mah Sing to fully acquire Cordova Land

By IZZAT RATNA

Mah Sing Group Bhd has proposed to acquire the entire interest of a company with the rights to a 4.5ha land in Cheras and a 4.4ha plot in Bukit Mertajam, Penang, for a total consideration of about RM307.2 million.

The company also announced that it has terminated the proposed plan to purchase a land which forms part of the Sultan Salahuddin Abdul Aziz Shah Golf Course in Shah Alam for RM327.4 million.

The property developer proposed to acquire the entire interest in Cordova Land Sdn Bhd via its wholly owned subsidiary, Nature Legend Development Sdn Bhd.

The company told Bursa Malaysia that Cordova Land has received approval from the Kuala Lumpur City Hall (DBKL) to purchase a 4.4ha prime land in Cheras.

Mah Sing said DBKL had accepted the offer by Cordova Land to purchase the land from DBKL for a purchase consideration of RM82.1 million.

It said based on preliminary plans, Cordova Land will undertake an integrated development called “M Vertica” on the land comprising residential suites and retail shops, with an estimated gross development value (GDV) of approximately RM2.2 billion.

“The company intends to fund the sale shares consideration through the group’s internally generated funds and/or proceeds raised from the group’s unrated senior perpetual securities programme (perps programme),” Mah Sing said on the Cordova Land purchase.

“As for the land consideration and costs and expenses related to the proposed development (including the reconstruction and upgrading costs for the Stadium Badminton Kuala Lumpur), it is intended

to be funded through a combination of internally generated funds, bank borrowings and/ or proceeds raised from the group’s perps programme.

Meanwhile, Mah Sing’s wholly owned subsidiary Enchanting View Development Sdn Bhd signed a sale and purchase agreement to purchase the land in Bukit Mertajam for RM43.8 million in cash. The land has an estimated GDV of RM150 million.

Mah Sing said the land acquired in Bukit Mertajam is ready for immediate development and fits in well with the quick turnaround model of the group.

The land is located along the southwestern side of Jalan Permatang Tinggi, Bukit Mertajam, which is mainly developed with 1.5- to three-storey terrace and semi-detached factories.

It also announced yesterday that Enchanting View had terminated the sale and purchase agreement to acquire the land which forms part of the Sultan Salahuddin Abdul Aziz Shah Golf Course for RM327.4 million.

The property developer had proposed to purchase land measuring 34.3ha in March 2014.

Mah Sing said Enchanting View had renegotiated the terms and conditions of the agreement — namely, the con- version approval and consent to transfer and/or charge in respect of the land in Enchanting View’s favour, have not been fulfilled.

“Given that the parties have negotiated in good faith and an amicable settlement or alternative arrangement on the transaction could not be reached, Enchanting View has decided not to proceed with the proposed acquisition and has terminated the agreement,” it added.