Berjaya Land buys Bukit Tagar land for RM155 million

PETALING JAYA: Berjaya Land Bhd, which posted RM1.55 billion in revenue for the first quarter ended July 31, 2016, has bought 871ha of land in Bukit Tagar, Selangor, from Berjaya Corp Bhd for RM155 million.

The property developer told Bursa Malaysia that its whollyowned subsidiary Alam Baiduri Sdn Bhd had entered into a sale and purchase agreement with BerjayaCity Sdn Bhd, a 100%owned subsidiary of Berjaya Corp.

Berjaya Land said it provides an opportunity for the group to increase its landbank and is expected to contribute positively to its future earnings.

The acquisition sum will be funded from internally generated funds.

Meanwhile, Berjaya Land registered a net loss of RM27.24 million compared with RM9.91 million in the same period last year, mainly due to unfavourable forex, higher operating expenses and lower progress billings for the property business.

Revenue for the quarter under review, however, expanded 3.5% from RM1.5 billion to RM1.55 billion.

Berjaya Land is of the view that the gaming business will be challenging in view of rising costs that dampened domestic consumer spending caused by the prevailing economic conditions and the increasing illegal gaming activities.

In spite of this, Sports Toto Malaysia Sdn Bhd is expected to maintain its market share in the numbers forecast operator industry.

On the operation of H.R. Owen Plc, it said there is no immediate material or noticeable impact on the luxury vehicles market resulting from the uncertainties of Brexit currently.

“However, the directors are cautious of the uncertainties that may arise from the Brexit and the impact it may have on the motor dealership segment performance for the remaining quarters of the financial year ending April 30, 2017,” it noted.

Berjaya Land foresees the performance of the hotels and resorts business will remain satisfactory whilst the property market outlook is expected to remain lukewarm.

“Under the foregoing circumstances, the directors are of the view that the operating performance of the group will continue to remain challenging in the remaining quarters of the financial year ending April 30, 2017,” it added.