“BCB said it plans to develop the land into a mixed-use development featuring both residential and retail, with an estimated gross development value of RM1.1 billion spanning over eight years.“
KUALA LUMPUR, 15th May 2024 – Property developer BCB Bhd (KL) is acquiring 59 parcels of freehold land in Batu Pahat, Johor, totaling around 286.82 acres, for RM83.71 million from oil palm grower Lian Hup Seng Sdn Bhd.
In a filing with Bursa Malaysia on Tuesday, BCB announced its intention to develop the land into a mixed-use project comprising residential and retail components. The project is expected to have an estimated gross development value of RM1.1 billion and will be developed over a period of eight years.
“This initiative will allow BCB to expand its market share and diversify its product offerings for homebuyers in Batu Pahat,” the group stated, noting that the project is expected to begin in 2027.
The group mentioned that the land acquisition is part of their landbanking strategy.
“This strategic acquisition will significantly enlarge BCB’s land bank and ensure sustainable earnings over the medium to long term, considering the positive outlook of the property market in Johor,” it added.
BCB stated that the acquisition will be financed through a combination of internally generated funds and bank loans. “The precise funding mix will be determined by management at a later stage, considering the group’s debt level, interest expenses, and internal cash needs for business operations,” the company explained.
Barring any unexpected developments, the acquisition is anticipated to be finalized by 2025.
BCB shares remained steady at 42 sen on Tuesday, giving the company a market capitalization of RM173.25 million.
