Avaland Bhd is set to expand its footprint in the Klang Valley with the proposed acquisition of a 2.17-acre parcel of leasehold land in Section 13, Petaling Jaya. The property developer announced plans to undertake a high-rise commercial development on the site, with an estimated gross development value (GDV) of RM320 million.
In a filing with Bursa Malaysia on Tuesday, Avaland disclosed that the acquisition will be made through its wholly owned subsidiary, Leisure Event Sdn Bhd. The land, situated adjacent to Plaza 33, will be acquired from Comit Communication Technologies (M) Sdn Bhd (CCT) for a cash consideration of RM49 million. CCT is a subsidiary of Warisan TC Holdings Bhd (75.5%) and Tan Chong Motor Holdings Bhd (24.5%).
Avaland intends to fund the purchase through a combination of internally generated funds and bank borrowings. Completion of the transaction is targeted for the fourth quarter of 2025.
An independent valuation by CBRE WTW Valuation & Advisory Sdn Bhd has placed the market value of the property at RM49 million. The land currently carries a net book value of RM45.5 million.
While the acquisition is not expected to have a material impact on Avaland’s financial performance for the year ending 31 December 2025, it is anticipated to contribute positively to future earnings.
Avaland Chief Executive Officer Apollo Bello Tanco described the acquisition as a strategic move aligned with the group’s growth plans in key urban locations. “We are excited about this acquisition as it represents a strategic step in expanding our presence within the vibrant and thriving township of Petaling Jaya. The encouraging response to our earlier developments across the Klang Valley reinforces our confidence in this location,” he said in a statement.
In a separate announcement, Warisan TC Holdings noted that the divestment was a prudent step, citing the 50-year remaining lease tenure as a key factor. The company highlighted that the property’s value is expected to decline as the lease term shortens, unless renewed at potentially significant cost. Warisan TC added that it had held the land for over a decade and that the disposal allows it to unlock shareholder value by monetising the asset at prevailing market value.
At market close, Avaland shares rose half a sen or 1.8% to 29 sen, giving the company a market capitalisation of RM422.5 million. The stock has declined nearly 10% year-to-date. Meanwhile, Warisan TC Holdings ended unchanged at RM1.05, with a market capitalisation of RM70.56 million. Its shares have fallen close to 30% so far this year.
-The Edge
