Teladan Setia buys Melaka land for RM48.5mil

Key takeaway: Teladan Setia Group Bhd and Megan Mastikan Sdn Bhd entered into a sale and purchase agreement (SPA) to buy 3.05 hectares of land in the central Melaka region for RM48.5 million.

The SPA, which was entered into through Asal Harta Sdn Bhd (AHSB), a fully owned subsidiary of Teladan Setia, would be financed through a combination of bank borrowings and domestically generated money.

Richard Teo Lay Ban, managing director of Teladan Setia, said the acquisition is in line with the business's plan to balance its landbank projects in order to meet the needs of various market scenarios and needs.

"This site is designated for the construction of a health and wellness centre and residential service apartments as part of our efforts to improve the value offered in our real estate projects."

"The land is well situated in the centre of Melaka town, across from Mahkota Medical Center, and close to renowned tourist attractions including Jonker Street. We are certain that the projects will succeed greatly because this is a popular place with both local and foreign tourists", Teo stated.

The group has been actively building up land banks in strategic places because it believes the state has significant economic potential.

Teladan Setia has added new land banks totalling 347.22 hectares in Melaka in the past two years alone.

The company's total landbank will reach 447.95 hectares after this acquisition, enabling it to grow its real estate development activities and provide long-term, sustainable revenue.

The acquisition is anticipated to be completed by the fourth quarter of 2023, subject to Melaka state authority approval.

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