KUALA LUMPUR: Melaka-based property developer Teladan Setia Group Bhd has proposed to acquire five parcels of land from Bakat Muhibbah Sdn Bhd totalling 136.9ha in Melaka for a cash consideration of RM117.9mil.

       Yesterday, the group said its wholly-owned subsidiary Riverwell Resources Sdn Bhd (RRSB) had entered into a sale and purchase agreement with Bakat Muhibbah Sdn Bhd for the proposed acquisition.

       In a filing with Bursa Malaysia, the property developer said the five parcels of land would be used for the development of gated and guarded townships.

       “Due to the Covid-19 pandemic, people are spending significantly more time at home these days. Based on this, we believe landed properties with spacious living areas will continue to be highly sought after for the foreseeable future.

       “Moreover, consumer buying patterns have recently been shifting towards lifestyle living and security. As such, we are diverting our focus on developments such as gated and guarded townships to meet the needs of today’s consumers,” added the group.

       The five parcels of land are located between Tiara Melaka Golf & Country Club and Orna Golf and Country Club, just after the north-east boundary of Central Melaka.

       Meanwhile, Teladan Setia managing director Richard Teo Lay Ban said the group continues to expand its landlank, capitalising on the current economic market environment of attractive land prices and low interest rates.

       “Thanks to our strong cash position and healthy gearing ratio, we are able to make the most of the current opportunity and these landbank expansion efforts will sustain our pipeline developments well into the future,” he added.

       In less than six months since the group was listed on Bursa Malaysia, Teladan has announced acquisitions of landbanks totalling 890.2 acres.

       Currently, the group’s undeveloped landbank stands at 1,109 acres.

       In April this year, the group purchased a 519.8-acre parcel of land in Jasin.

       Meanwhile, Teladan noted that the acquisition of the five parcels of land is expected to be funded through a combination of internally generated funds, bank borrowings as well as proceeds from its recent initial public offering.

       The proposed acquisition is slated to be completed by the fourth quarter of 2021.

       “Barring any unforeseen circumstances and subject to approvals from the relevant authorities, the proposed acquisition is expected to be completed,” said the group.

       The group has been active in accumulating land and continues to see potential in Melaka as it has one of the lowest residential property overhangs in Malaysia.

       For the first half ended June 30, Teldan posted a net profit of RM14.8mil on the back of RM81.9mil revenue.

       Heading towards the end of 2021, Teo remained cautiously optimistic about the recovery of the property market.