Malton Unit Seeks To Buy Johor Bahru Land For RM97.23 Mln

KUALA LUMPUR, June 3 (Bernama) -- Malton Bhd’s wholly-owned subsidiary Bukit Rimau Development Sdn Bhd has proposed to acquire a parcel of freehold land measuring 1.5 hectares in Johor Bahru for RM97.23 million.

The property developer said its subsidiary has signed a conditional agreement with Tanjung Nakhoda (M) Sdn Bhd to buy the land, which is located adjacent to the Johor Golf and Country Club and within a new integrated commercial development known as W City Larkinton.

“The proposed acquisition provides an opportunity for the group to acquire a piece of prime land in Johor Bahru which has seen an increase in development activities with several other property developers having already acquired lands and commenced development within the area,” it said in a filing with Bursa Malaysia today.

According to Malton, the company has conducted a preliminary assessment of the land’s development potential which will comprise residential service apartments and the market selling prices of service apartments within the vicinity of the land to arrive at an estimated gross development value of about RM950 million.

However, it has yet to determine the exact development details of the land, including the name of the project, the total units, the total development costs, the expected commencement and completion date of the development, and source of funds to finance the development cost.

Malton said this will only be finalised once the development approval is obtained from the local state authorities.

“With the group’s recent handover of its Mutiara Hilltop project in Puchong, Selangor, and our recent project launches for the year which include Nova Business Hub (Sungai Buloh), Mutiara Lake Puchong (Puchong), Mutiara Kempas (Johor Bahru), The Hill Residences (Seremban) as well as our upcoming launch of Ukay Spring (Ampang), it is crucial for the group to embark on land banking exercise to ensure a healthy land bank for the sustainability of its property development business division. 

“The proposed acquisition would enhance the replenishment of the group’s development land bank,” it added.

Malton said the group is confident in the land’s development potential given the recent success achieved by Mutiara Kempas, the group’s maiden service apartment project in Johor Bahru that has achieved a take-up rate of 70 per cent since its preview in April this year.

Subject to the approvals of the relevant authorities, Malton said, the proposed acquisition is expected to be completed by the first quarter of 2027. 

-- BERNAMA