LBI Capital Bhd has proposed to acquire land in Selangor for RM14.5 million to replenish its property development portfolio ahead of the completion of its three projects in the Klang Valley some time next year.

The purchase price, determined on a ‘willing-buyer-willing-seller’ basis, is at a 4.6% discount to the vendor, Pembinaan Amal Cekap Sdn Bhd’s original investment cost of RM15.2 million.

The land, measuring 197,199 sq ft in Taman Mutiara Puchong, Petaling, will be developed into 142 units of two- to three-storey shop offices over the next two to three years, the company said in a statement yesterday.

The acquisition, to be satisfied via a combination of cash and borrowings, is expected to contribute positively to the group’s earnings “in the near future”, LBI said, but added it is not able to determine the extent of its contribution at this juncture.

“Since the land has been subdivided into individual commercial lots, (we) would be able to launch it on a fast-track basis once the conditions precedent has been fulfilled,” it said.

Located within the area of Puchong and Seri Kembangan, the land is assessible via highways like the Lebuhraya Damansara-Puchong (LDP), North South Central Link and the KL-Seremban Highway.

The deal, which needs shareholders’ approval, is expected to be completed within three months from the time the agreement becomes unconditional.

In January, the company’s managing director Datuk Jeffrey Ng had said LBI intends to grow its landbank in Selangor and is looking to go into higher-end property projects. Property development makes up 95% of LBI’s topline, with the rest coming from manufacturing and trading in rubber products.

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