BY DALJIT DHESI
PETALING JAYA: Ekovest Bhd’s proposed acquisition of two parcels of land from Lim Seong Hai Holdings Sdn Bhd (LSHHSB) for RM26.77mil or RM530 per square feet (psf) ) is fair as the additional land would improve the product offering for its existing EkoQuay project.
UOB Kay Hian Research, which is maintaining a buy call on the stock with a target price of RM1.41, said on Monday said it believed the implied purchase price of RM530psf was fair as the asking prices of lands in the surrounding areas range from between RM320 and 550psf.
While Ekovest’s purchase price is on the higher end, the research house think it was justified, given that the additional land would improve the product offering for its existing EkoQuay project.
Ekovest’s wholly-owned subsidiary, Ekovest Properties Sdn Bhd (EPSB), recently entered into a sale-and-purchase agreement with LSHHSB for the acquisition of the parcel of freehold land held under GRN 24930 Lot 256, Seksyen 85, Kuala Lumpur, measuring 2,403sqm (Land 1); and the parcel of freehold land held under GM1497, Lot 326, Seksyen 85, Mukim Kuala Lumpur, Setapak, measuring 2,290sqm (Land 2).
Datuk Seri Lim Keng Cheng, a director of Ekovest, is a major shareholder and director of LSHHSB. The land pieces are located next to Ekovest’s existing land earmarked for the EkoQuay project.
EPSB intends to amalgamate the newly acquired lands with the existing lands together to undertake a mixed commercial project.
The total size of the development will be 2.75 acres (existing landbank of 1.59 acres and 1.16 acres of acquired lands).
Payment terms: Ekovest is required to place a 1% deposit of RM2.68m, while the remaining 99% would be paid to the vendor within three months from the date of the SPA. The group expects the purchase to be funded by cash (30%) and debt (70%).
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