Malton Bhd Acquires Prime Land in Genting Highlands for RM65 Million
Malton Bhd (KL) is set to expand its footprint in Genting Highlands with the acquisition of four parcels of land from Sering Manis Sdn Bhd, a 51%-owned subsidiary of Global Oriental Bhd (KL), for RM65 million. This strategic purchase aims to develop serviced apartments and luxury villas, enhancing the group’s portfolio in a prime location.
Details of the Acquisition
In a filing with Bursa Malaysia, Malton Bhd revealed that the 30.17 acres of freehold land are situated off Jalan Meranti, connected to the main road leading to Resorts World Genting and south of Genting View Resort. The land is priced at RM49.46 per sq ft, and the acquisition will be funded through internally generated funds and bank borrowings.
Strategic Development Plans
The proposed development for the Genting land is expected to comprise serviced apartments and luxury villas, generating an estimated gross development value (GDV) of approximately RM1.29 billion. The project’s strategic location in Genting Highlands, known for its cooler temperatures and proximity to Resorts World Genting, makes it an attractive investment for holiday homes and potential property investors.
Infrastructure and Development Collaboration
Sering Manis Sdn Bhd, which owns 248 acres of land adjacent to the acquired parcels, will act as the master developer for the area. They will construct common infrastructure to serve both the newly acquired land and their existing holdings. Global Oriental has agreed to share infrastructure costs totaling RM26 million, to be paid progressively based on work certificates, with completion expected within 42 months.
Financial and Strategic Benefits
Global Oriental highlighted the disposal as an opportunity to realize the capital appreciation of the land, projecting a net gain of RM7.5 million from the sale. The proceeds from this transaction will help reduce borrowings and secure working capital for future development projects and business opportunities.
Malton’s group chief executive officer and managing director, Lee Chun Fai, commented, “The data centre sector is rapidly expanding, driven by the exponential growth of cloud computing and the need for robust, scalable infrastructure. Our involvement in the data centre construction market signifies our commitment to innovation and adaptability in meeting the needs of high-tech industries.”
Market Impact and Future Prospects
Malton Bhd’s shares saw a 4.71% increase, closing at 44.5 sen on Tuesday, giving the company a market capitalization of RM235.02 million. Similarly, Global Oriental’s shares rose 4.88% to 21.5 sen, valuing the company at RM97.76 million.
The strategic acquisition and development plans position Malton Bhd to capitalize on the growing demand for luxury residences and serviced apartments in Genting Highlands. This project is expected to boost the group’s portfolio and drive future growth, aligning with the increasing development activities in the region.
Conclusion
Malton Bhd’s acquisition of prime land in Genting Highlands underscores its strategic intent to develop high-value properties in desirable locations. With an estimated GDV of RM1.29 billion, the planned serviced apartments and luxury villas project is poised to set new benchmarks in the region’s property market. As Malton continues to leverage its internal capabilities and strategic partnerships, it is well-positioned to deliver substantial value to its stakeholders.
