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KUALA LUMPUR (Feb 8): Chin Hin Group Property Bhd (CHGP) today announced its plan to spend RM268 million to acquire 81.9 acres of land in the Klang Valley to develop five different real estate projects, and aims to launch projects by RM3.73 billion worth of gross development value in the next two years.
“We intend to expand our development portfolio to various growth corridors in the Klang Valley, such as Serendah, Bandar Kinrara, Bangsar South and Cyberjaya,” CEO Chiau Haw Choon said in a statement.
The types of developments proposed include municipalities, service departments, mixed uses, and offices.
“With the growing prospect of an effective Covid-19 vaccination this year, there is optimism that the real estate market will see a turning point soon. On top of that, historically low interest rates and various homeownership incentives will certainly bring some vibrancy to the market.
“As a developer, this is a good time for us to seize opportunities with the currently attractive land prices and expand our land bank in strategic locations. This will ensure that the Group has a clear and sustainable growth plan ahead. Our goal is to launch these properties in 1 to 2 years, in line with the expected recovery of the real estate market ”, said Chiau.
The group also announced the acquisition of an 11.53 acre parcel in Cyberjaya for RM50.22 million, as part of its bid to replenish its land bank.
“Estimated to generate RM1.1 billion in GDV, CHGP has proposed to build a mixed development on this wholly owned land that is currently vacant … The proposed acquisition to build the land bank and development pipeline is expected CHGP’s real estate will contribute positively to the group in the next five years and improve the visibility of its earnings, ”said Chiau.
Boon Koon Capital Sdn Bhd, wholly owned by CHGP, signed the purchase agreement for the acquisition with SMD Real Estate Sdn Bhd, which is indirectly owned by businessman Datuk Hoe Tze Fook. The acquisition is expected to be completed in the second quarter of 2021.
CHGP’s shares rose 21.62% or 16 sen today to close at 90 sen, giving the group a market capitalization of RM311.46 million.
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