First of all, I still own 1,000 units of Hap Seng Consolidated Bhd. Yes, too small to amount to anything except for potential dividends for a good dinner with my family. Hopefully, it continues to do well and this is reflected in its share price. Well, as per TheEdge, Hap Seng Consolidated is buying 36 parcels of freehold agriculture land with an aggregate land size of 1,449.52 acres in Kuala Selangor for RM228.75 million. The plan is for a mixed development with an estimated gross development value (GDV) of RM9.3 billion. Yes, land cost is less than 3 percent of the estimated GDV.
The plots of lands would be from two separate vendors, Shalimar (Malay) PLC and Indo Malay PLC. From Shalimar, it will buy 20 plots of land, which collectively measure 734.82 acres. The price would be RM121.54 million. From this buy, it will develop “sought-after, modern guarded and gated lifestyle residential properties with commercial components.” The project has an estimated GDV of the RM5 billion, over a 15-year development period.
It will be buying 16 plots of lands measuring 715 acres from Indo Malay for RM107 million. Hap Seng intends to develop the land into a mixed development township with affordable housing. The estimated GDV is RM4.3 billion, over a 15-year period. The target for this development would be for the increasing demand of affordable properties as well as for students in University Selangor (UNISEL)
Connectivity wise, all 36 plots can be accessed easily via LATAR expressway. Besides connectivity, the lands are also close to the Royal Kampung Kuantan Golf Club, and University of Selangor in Batang Berjuntai. I think majority of us would know the Kuala Selangor is also famous for firefly-watching. Based google map, the distance of Kuala Selangor Firefly Village to KLCC Jalan Ampang is 69km or 56 minutes on non-peak periods. I think this would also mean that it will give developers in Semenyih some healthy competition. Good for us, the buyers. More choices, more competitive prices, hopefully.
Nothing has been launched just yet because the deal is expected to be completed within Q3 2016. Happy waiting.
written on 6 July 2016
Next suggested article: 533.93 acre, near Setia Alam, GDV of RM8.58bil