The Edge, 6 September 2011 - Dijaya acquires 80ha in Kajang for RM228 million

The Edge, 6 September 2011

Latest buy to cash in on potential appreciation with proposed MRT project in the area
KUALA LUMPUR: Dijaya Corp Bhd has acquired 80ha of freehold development land in Kajang from Taiyo Resort (KL) Bhd for RM228 million or RM26.36 per sq ft. It will be turned into a mixed development with expected gross development value (GDV) of RM2 billion.

Dijaya said in a statement yesterday that its wholly owned subsidiary Tropicana City Service Suites Sdn Bhd had entered into a conditional sale and purchase agreement with Taiyo for the five parcels of land which are currently occupied by the Kajang Hill Golf Club.

The planned development, named Tropicana Kajang, will comprise houses, condominiums, apartments and shop offices, said Dijaya.

"The group is continually acquiring sizeable [pieces of] land with good development potential in strategic locations. Today's land deal provides an opportunity for the group to introduce more development to Kajang with the quality and prestige synonymous with our Tropicana brand," said Tan Sri Danny Tan, Dijaya group CEO, in yesterday's statement..

The acquisition will be funded by internally generated funds and/or bank borrowings will be determined by the management of the company at a later stage," Dijaya said.

According to Dijaya, the land is located close to Serdang, Mahkota Cheras and Bandar Sungai Long. While Kajang is already served by numerous highways, the proposed Kajang-Sungai Buloh mass rapid transit (MRT) project will enhance the investment potential in the vicinity, presenting a great opportunity to property investors, it said.

"The freehold land has upside potential for capital appreciation because of increasing demand for residential and commercial properties in Kajang, as evident by the demand for other developments (by other developers) such as Nadayu 92, Tiara Residence, Ramal Villa, Twin Palm and Jade Hills," Dijaya said.

Yesterday's land deal was the third major acquisition by Dijaya thus far this year. In July, the group proposed to acquire 36ha of land in Subang for RM385.5 million from Shunghwa Picture Tubes (M) Sdn Bhd and last month it announced a deal to acquire 92ha in Plentong,

Johor Bahru for RM220 million.