Acoustech buys Melaka serviced apartment project
Group expects RM43.9mil profit from the development
PETALING JAYA: Acoustech Bhd has entered into an agreement with Jaya Mapan Sdn Bhd to acquire a block of serviced apartments for a purchase consideration of RM18mil.
Acoustech is an investment holding company with interest in making paints, electrical equipment and in property development.
Acoustech said in a filing with Bursa Malaysia that the purchase would be done via its wholly-owned subsidiary Teras Eco Sdn Bhd.
Jaya Mapan is the master developer of the project.
The purchase of the 44-storey block, comprising 306 serviced apartments, will be satisfied through a combination of cash amounting to RM8.11mil and shares amounting to RM9.89mil at an indicative price of 43 sen per share.
The building is located in Kota Laksamana, Melaka, and the purchase includes all pre-existing structures.
The building, identified as Block C, forms part of an ongoing mixed development known as The Green with a site measuring about 4.38 acres.
The Green is about 3.5 km from the Melaka City Centre. It comprises two blocks of luxury serviced apartments, which is Block B, and a 44-storey Block C that will be acquired by Acoustech.
There is also a 16-storey hotel, known as Block A, 18 retail lots and 10 units of 4-sto- rey shop offices.
Save for Block C, other components of the mixed development are currently undergoing construction by Jaya Mapan.
Jaya Mapan will transfer the development rights and its interest in the serviced apartment to Teras Eco on completion of the project. It will also issue individual titles to the residential units to end purchasers or proprietors of the Block C serviced apartments.
The estimated gross development value and gross development cost to be derived from the 44-storey serviced apartments are RM120.9mil and RM77mil, respectively. The expected profit is RM43.9mil.
Construction work is projected to be completed by 2022.
Acoustech said the proposed acquisition would give it an opportunity to acquire the rights for a development with good potential as the project is strategically located.
“The company will also be able to develop the project without incurring additional costs as the piling works, building foundation, podium and car park level have been completed,” it said.
The company will also be able to develop the project without incurring additional costs as the piling works, building foundation, podium and car park level have been completed.