Hua Yang aborts plan to buy Penang land due to SPA conditions unfulfilled

Property developer Hua Yang Bhd has aborted its plan to acquire a 3.14-acre piece of land in Bukit Mertajam, Penang, due to the vendor's inability to fulfill one of the conditions precedent (CP) to the sales and purchase agreement (SPA).

In a statement today, the group said the non-fulfillment will disrupt the strategic development plan and time frame that the group had for the parcel of land.

However, the termination of the SPA will not impact Hua Yang's 2016 financial results.

The land is one of two parcels of freehold land that Hua Yang was planning to acquire, to develop into a serviced apartment.

"The group will continue to explore new opportunities to expand its landbank.

"Nevertheless, any potential acquisitions must meet the criteria set out by the group and must be able to deliver tangible value to its shareholders in the long term, in a sustainable manner," said Hua Yang.

As at 3.44pm, Hua Yang's shares were traded up 0.53% at RM1.88, with 144,700 shares done, for a market capitalisation of RM493.68 million. - By Azril Annuar (The Edge Property)