PETALING JAYA: Berjaya Land Bhd (BLand) is proposing to acquire 871.01 acres in Ulu Selangor from BerjayaCity Sdn Bhd (BCity) in a related party transaction worth RM155mil.
In a filing with Bursa Malaysia yesterday, BLand said the proposed acquisition provides an opportunity for the BLand group to increase its land bank.
The company said its 100%-owned subsidiary, Alam Baiduri Sdn Bhd, had entered into a sale and purchase agreement with BCity, a 100%-owned subsidiary of Berjaya Corp Bhd, for the acquisition of the freehold plots of land at RM177,954 per acre.
“The proposed acquisition will not have any material effect on the consolidated earnings of BLand for the current financial year ending April 30, 2017 (FY17).
“However, the proposed acquisition is expected to contribute positively to the future earnings of the BLand group,” it said, adding that the acquisition is expected to be completed by this year.
BLand said the plots of land are located within an area of Bukit Tagar zoned for industrial use according to the Planning Department of Hulu Selangor District Council.
“Currently, the land comprises oil palm estates and vacant land. The ages of the oil palm trees as of Aug 1, 2016 are between 15 and 26 years.”
BCity is involved in property investment and development, as well as cultivation and sale of palm oil and palm kernel.
Separately, BLand announced that it had reported a net loss of RM27.24mil for its first quarter ended July 31, 2016, compared with a net profit of RM9.91mil in the previous corresponding period.
BLand said the net loss in the first quarter was mainly attributed to losses incurred by the property development and investment business from lower progress billings.
The weaker earnings was also due to an unfavourable foreign exchange effect recognised by the group, and a higher share of losses from associated companies, particularly fromBerjaya Assets Bhd which had reported an impairment in goodwill.
BLand reported a revenue of RM1.55bil during the first quarter of this year compared with RM1.50bil in the previous corresponding period.
On its prospects for the current financial year, BLand said the performance of the hotels and resorts business is expected to remain satisfactory, while the property market outlook is expected to remain lukewarm.
