Bursa Malaysia Market News, 8 June 2011 - Dijaya buys land in Subang for mixed development with RM2.5b GDV

Bursa Malaysia Market News, 8 June 2011

KUALA LUMPUR: DIJAYA CORPORATION BHD has acquired four parcels of freehold land in Subang for RM385.5 million to be developed into a mixed residential and commercial development with an expected total gross development value (GDV) of RM2.5 billion.

In a statement Wednesday, June 8, Dijaya said its subsidiary Tropicana Subang Development Sdn Bhd (formerly known as Tropicana Mall Management Sdn Bhd), has entered into a sale and purchase agreement with Chunghwa Picture Tubes (Malaysia) Sdn Bhd to acquire the

land measuring about 88.5 acres in Pekan Country Heights Selangor, Subang.

It said the residential development would consist of condominiums, linked houses, semi-detached houses and bungalows, while the commercial development will feature retail, shopping mall and office lots as well as serviced apartments.

'These lands are strategically located in Subang, a sought-after area within the Klang Valley region for its established neighbourhood, ready amenities and facilities added with its excellent accessibility and connectivity to many parts of Klang Valley,' it said.

Dijaya said development within the vicinity still offered an upside in terms of capital appreciation and yield due to the limited supply of a sizeable development land that would allow a developer to plan for a comprehensive development.

'With tremendous potential growth, this new venture will create further excitement and demand from the already developed surrounding neighbourhood of Subang,' it said.

Meanwhile, another subsidiary of Dijaya, Tropicana Kampar Development Sdn Bhd acquired 12.9 acres of land for RM5.6 million in Kampar, Perak.

Tropicana Kampar signed a land purchase deal with Chunghwa Picture Tubes and Makolin Electronics (Malaysia) Sdn Bhd, for the three parcels of leasehold land.

Dijaya said the land would be converted to a mixed residential and commercial development featuring five-storey apartments and four-storey shop offices with an estimated GDV of RM123.7 million.