BY THEAN LEE CHENG
KUALA LUMPUR: S P Setia is acquiring I&P Group Sdn Bhd from Permodalan Nasional Bhd (PNB) which will transform it into the largest owner of prime land in the country.
S P Setia will also buy 342 acres of prime land in Bangi from Seriemas Development Sdn Bhd, which is a subsidiary of PNB for about RM447.58mil.
This proposed acquisition of I&P, which has 4,263 acres of landbank, is between RM3.5bil and RM3.75bil.
If the deal goes through, the I&P acquisition will be funded by equities, internally generated funds and borrowings.
S P Setia, PNB and Amanahraya Trustees Bhd has signed a non-binding memorandum of intent to start talks on the proposed acquisition of of I&P Group which will enable it to fast track its expansion plan.
The joint statement said that S P Setia is constantly looking for opportunities to expand its landbank and stay ahead as the leading township developer oin Malaysia.
Upon successful completion of the proposed I&P acquisition, S P Setia will have increase its prime landbanks in central Klang Valley and Johor Bahru significantly.
S P Setia president and CEO Datuk Khor Chap Jen said the acquisition of I&P “will allow us to tap the synergistic opportunities that I&P Group could offer given that its landbanks are local within growth areas in the central part of the Klang Valley and Johor Bahru”.
As for the acquisition of the land from Seriemas Development, SP Setia said the land was located in Bangi, Selangor for RM447.58mil or RM30 per square foot, plus a share of the future audited profits from the development of the land, up to a maximum of RM3,000 per sq ft.
S P Setia plans to undertake a mixed development township comprising residential and commercial property products with a gross development value of RM2.74bil.
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