KUALA LUMPUR (Oct 12): Propel Global Bhd is to purchase two parcels of land in Kuala Kuantan, Pahang for RM14.7 million to undertake a commercial development project with a gross development value (GDV) of RM68 million.
The construction firm said its wholly-owned subsidiary Propel Global Development Sdn Bhd has inked agreements with the vendor, Goldhill Deluxe Sdn Bhd, to purchase a 14,442 sq m parcel for RM13.95 million, and another 6,197 sq m parcel for RM750,266,
On the land, Propel Global plans to develop 34 units of three-storey shop lots, according to Propel Global’s filing on Thursday.
“The proposed development is expected to commence construction in October 2024 and the expected completion date is Sept 2026,” the company added.
It said the proposed acquisition and development represent a strategic opportunity for the company to capitalise on the growing demand for commercial properties in Kuantan, taking into consideration the completion and launch of the East Coast Railway Line in 2027, which is expected to bring in more commercial investment activities into the area.
Propel Global noted that the RM14.7 million purchase was arrived at after taking into consideration the prospects of the proposed development, as well as the parcels’ market value of RM15.11 million ascribed by valuer Laurelcap Sdn Bhd in August.
The company said the consideration is to be funded through internally-generated funds or in combination with the issuance of company shares. It expects the land acquisition to be completed by end-2023.
“The costs and expenses related to the proposed development of approximately RM54.4 million would be funded via a combination of internally-generated funds and bank borrowings,” it added.
The vendor, Goldhill Deluxe, is 66%-owned by Datuk Lim Soo Pin @ Lim Ah Lek, while the remaining 33% is controlled by Datin Mary Lim Geok Eng.
Shares in Propel Global last traded at 16 sen on Oct 11, valuing the company at RM98.61 million.
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Source: EdgeProp.my
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