KUALA LUMPUR, May 6 — Ho Hup Construction Company Bhd’s wholly-owned subsidiary Bukit Jalil Development Sdn Bhd today entered into a conditional sale and purchase agreement (SPA) with Exsim Persiaran Jalil Sdn Bhd for the proposed disposal of a parcel for RM110 million.
In a filing with Bursa Malaysia today, it said the parcel involved a freehold commercial development land measuring 3.09 acres (1.25 hectares) in Petaling, Kuala Lumpur.
Ho Hup said the land was granted a development order issued by Dewan Bandaraya Kuala Lumpur pertaining to a mixed development project on the land vide letter dated February 25, 2022, which was amended subsequently on July 14, 2022, and December 15, 2023.
“As at the date of this announcement, Bukit Jalil Development has made payment of RM4.25 million of development charges with an outstanding amount of RM10.60 million to be paid in instalments.
“Pursuant to the terms of the SPA, the outstanding development charges of RM10.60 million will be assumed by Exsim Persiaran Jalil,” it said.
The construction company said the land was approved for development comprising two tower blocks (Block A and Block B) to be built on top of an eight-storey podium consisting of three retail spaces and 20 retail shops.
It said the small-office-versatile-office (Sovos) (Phase 1) of 494 units, Sovos (Phase 2) of 288 units as well as the hotel of 72 rooms were sited to be on Block A, while the service apartments of 408 units were sited to be in Block B (Flex project).
According to the group, the disposal consideration of RM110 million was derived on a willing-buyer, willing-seller basis after consideration of the indicative market value.
It said the gross proceeds from the proposed disposal were intended to be utilised to repay bank borrowings, refund all monies received from existing end purchasers, pay existing consultants and contractors, and defray estimated expenses in relation to the proposed disposal.
“Given the recent commencement of the Flex project and the substantial capital requirements as well as management’s evaluation of options to ensure the group’s sustainability, the proposed disposal offers an opportunity to improve liquidity and fortify the group’s financial position,” said Ho Hup.
Barring any unforeseen circumstances, it said the submission to the relevant authorities for the proposed disposal is expected to be made within two months from the announcement date, and the proposed disposal is expected to be completed in the third quarter of 2024. — Bernama
