Business Times, 9 June 2011 - Dijaya to develop RM2.5b properties in Subang

Business Times, 9 June 2011

KUALA LUMPUR: Dijaya Corp Bhd plans to develop properties worth RM2.5 billion after buying a 14.5ha freehold land in Subang, Selangor.

The property developer's subsidiary, Tropicana Subang Development Sdn Bhd, bought four parcels of freehold land from Chunghwa Picture Tubes (Malaysia) Sdn Bhd for RM385.5 million in an agreement signed yesterday.

Dijaya plans to transform the land located at Pekan Country Heights Selangor, on the outskirts of Subang, into a mixed residential and commercial development.

"The residential development consists of condominiums, linked houses, semi-dees and bungalows, while the commercial development will feature retail, shopping mall and office lots as well as serviced apartments," it said in a statement to Bursa Malaysia yesterday.

Dijaya said the land is 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.

"Development within the vicinity still offers 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," it added.

Dijaya, known for its flagship Tropicana Golf & Country Resort and Tropicana Indah Resort Homes development in the Klang Valley, said it is on a constant lookout for investment opportunities to expand its landbank.

"We will continue to build upon the group's signature resort-living concept. By following a plan of measured and sensible growth, we can bring our brand values to a wider scope of emerging markets," group chief executive officer Tan Sri Datuk Danny Tan said.

Meanwhile, another unit of Dijaya, Tropicana Kampar Development Sdn Bhd, also bought from Chunghwa Picture Tubes and Makolin Electronics (Malaysia) Sdn Bhd three parcels of leasehold land in Kampar, Perak, for RM5.6 million.

The 5.2ha would be converted to a mixed residential and commercial development featuring five-storey apartments and four-storey shop offices.

"The estimated gross development value for this project is RM123.7 million," Dijaya said.

Kampar is currently a centre of tertiary education, with a campus in Tunku Abdul Rahman College and a campus in Universiti Tunku Abdul Rahman (UTAR).