AEON Co Acquires Two Land Parcels in Seremban for RM103 Million to Build a Mall

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“AEON’s filing with Bursa Malaysia states that this acquisition aligns with its strategy to grow its future retail business and expand in Seremban.”

KUALA LUMPUR, 5th June 2024 – AEON Co (M) Bhd (KL) is acquiring two plots of land in Seremban, Negeri Sembilan, for RM102.89 million to construct a shopping mall.

The department store and shopping mall operator entered into a sale and purchase agreement with Real Attraction Sdn Bhd on Tuesday to purchase these parcels, which cover 23.045 acres in Bandar Seremban Utama.

According to AEON’s filing with Bursa Malaysia, this acquisition aligns with its corporate strategy to grow its future retail operations and offers the group an opportunity to expand its presence in Seremban.

“The parcels of land are strategically positioned right next to the existing AEON Mall Seremban 2, allowing AEON to build a commercial shopping center connected to the current mall as part of its strategic expansion plans,” the company stated.

AEON stated that the market value of the land, as evaluated by Oregeon Property Consultancy Sdn Bhd, is RM110 million.

The agreement was finalized on a “willing buyer, willing seller” basis, considering the potential development of the land and the market values for comparable properties in the area, the company added.

AEON stated that 10% of the purchase price will be paid upon signing the sale and purchase agreement (SPA) using internally generated funds. The remaining amount will be financed through a mix of internally generated funds and bank borrowings.

The transaction, anticipated to be completed within 18 months from the SPA date, requires approval from the state authority, relevant authorities, the Economic Planning Unit of the Prime Minister’s Department, and the Distributive Trade Committee from the Ministry of Domestic Trade and Consumer Affairs, if applicable.

As of the end of March, AEON reported a short-term loan of RM30.5 million and a long-term loan of RM370 million, with cash and cash equivalents totaling RM250.6 million.

At Tuesday’s closing, AEON’s shares rose by two sen or 1.42%, reaching RM1.43, and giving the company a market value of RM2.01 billion. The stock has increased by 30% year-to-date.

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