Malakoff buys Malacca land for future power projects

PETALING JAYA: Malakoff Corp Bhd’s wholly owned subsidiary Malakoff R&D Sdn Bhd yesterday entered into a sale and purchase agreement with Eksklusif Pesona Sdn Bhd to acquire a plot of freehold land of 71.44ha in Alor Gajah, Malacca, for RM150 million.

The proposed land acquisition is deemed a related party transaction.

Currently, the land is cultivated and planted with matured oil palm trees between 13 and 39 years old. In the past three years, the land has produced over 710 metric tons of palm oil fruit bunches. Access within the site is generally via laterite and gravel road, and the site boundaries are not delineated with any form of perimeter fencing.

Eksklusif Pesona, the registered beneficial owner of the land, is a wholly owned subsidiary of Tradewinds Plantation Bhd.

The proposed land acquisition is for the potential future development of renewable energy power plants by Malakoff and its group of companies including but not limited to large-scale solar, waste to energy, biomass and biogas power plants.

It will be financed with internally generated funds and/or external borrowings.

“Malakoff is continuously seeking potential plots of land for future project development to meet its current target of producing 10,000MW of power. With the recent acquisition of Alam Flora Sdn Bhd in December 2019, Malakoff also seeks to expand its waste management footprint locally by venturing into waste-to-energy, biogas and biomass power plants.”

It added that the most important aspect in the proposed land acquisition will be the availability of the injection point where, given its location, there are two possible options to access the land, namely via loop in loop out arrangement, or via direct connection to the nearby substations. Both injection points are viable interconnection options for future project development.

The proposed land acquisition is expected to be completed by the fourth quarter of 2020.