Update UEM Land plans Bangi township after buying IncKen land for RM268.5m

UEM LAND HOLDINGS BHD [] is buying two parcels of agricultural land from INCH KENNETH KAJANG RUBBER PLC [] for RM268.5 million to be developed into a township in Bangi, Selangor.

UEM Land had on Monday, Dec 6 announced it was buying the 463.51 acres of land in Semenyih, Selangor for a cash consideration of RM13.30 per sq ft.

The indicative market valuation of the land as appraised by Messrs Raine and Horne International Zaki + Partners Sdn Bhd was of RM248.3 million or RM12.30 per sq ft.

UEM Land had stated "the scale of the Bangi land, with a total land area in excess of 450 acres, would provide the opportunity for UEM Land to develop a comprehensive and integrated township".

It also said the group has surplus cash of RM351.5 million as at Sept 30, 2010 and the board intends to fund the requirements through internally generated funds and/or bank borrowings.

It said the Bangi land is adjacent to the Alam Sari township and Universiti Kebangsaan Malaysia, and is within the vicinity of Bandar Baru Bangi.

“Whilst the Bangi land is currently classified for agricultural land use and is an oil palm PLANTATION [] estate, approval for conversion to mixed development status was obtained by IncKen in 2007,” it said.

UEM Land said the proposed acquisition was part of its strategic plan where one of the objectives was to secure at least one new township development outside Nusajaya by 2015.

This was to enable the group to diversify its development portfolio and revenue sources outside Nusajaya in order to achieve its long term growth strategy.

“The scale of the Bangi Land, with a total land area in excess of 450 acres, would provide the opportunity for UEM Land to develop a comprehensive and integrated township,” it said. (The Edge Online written by Joseph Chin)