Selangor Dredging Bhd (SDB), through its wholly-owned subsidiary, has entered into an agreement to acquire 29.19 acres (11.81 hectares) of vacant leasehold land, along with completed earthworks, in Dengkil, Selangor, for a total consideration of RM87.9 million from Xtra Touch Sdn Bhd. This strategic acquisition is aligned with Selangor Dredging’s ongoing efforts to bolster its land bank, as disclosed in a stock exchange filing.
The seller, Xtra Touch Sdn Bhd, is wholly owned by Project Alam 2012 Sdn Bhd, with its directors identified as Choo Choon Seng, Loy Boon Chen Tey Kim En, and Loy Zhen Qi @ Li Zhen Qi.
The acquired land is strategically located within the township of Taman Putra Perdana, enjoying close proximity to major highways and boasting a scenic view of a 20-acre lake. The gross development value of this land is estimated at approximately RM609 million. Selangor Dredging’s wholly-owned subsidiary, Prestij Permai Sdn Bhd, envisions developing the land into around 550 units of two- and three-storey terraced houses.
To finance the land acquisition, Selangor Dredging will utilize a combination of internally generated cash and bank borrowings. It anticipates that the group’s net gearing ratio will increase by 6.93%, reaching 36.6% after the completion of this acquisition.
Despite the market dynamics, shares of Selangor Dredging have performed admirably this year, with a 38% year-to-date appreciation. On Tuesday, the company’s shares remained unchanged at 57.5 sen, reflecting a market capitalization of RM245.02 million. This strategic land acquisition is poised to contribute to the company’s growth and further enhance its position in the property development sector.