SDB buys two parcels of land in Gombak

Selangor Dredging Bhd (SDB) is buying two parcels of freehold agricultural land on 4.097ha in Gombak, Selangor for RM67.5mil, which is targeted for residential property development.

According to a filing with Bursa Malaysia yesterday, SDB said its unit SDB Properties Sdn Bhd had signed an agreement with Alam Palma Development Sdn Bhd for the purchase of the land.

SDB said Alam Palma had submitted an application to the relevant authority for approval to develop the said land in the Melawati area based on an increase of density from the existing eight units per acre to 60 units per acre but it had yet to receive the approval for the development order.

The purchase is conditional on Alam Palma getting the development order. SDB expected the acquisition to complete by end of the first quarter of 2017.

The land would be used for residential property project with RM450mil gross development value that would include affordable housing units under the Rumah Selangorku scheme.

It is planning to build 588 units of residential properties, of which 176 units properties are under the Selangorku scheme.

SDB said the purchase price of the land is RM4.8mil lower than the market price of RM72.3mil based on the valuation report of Raine & Horne International Zaki + Partners Sdn Bhd dated Jan 11. - The Star