Gamuda buys RM360m Rawang land for mixed development with RM3.3b GDV

03 Jan 2023 | The Edge Markets

Gamuda is buying 532 acres of land in Rawang (subject land) that is located next to its existing 810-acre Gamuda Gardens township in north Sungai Buloh.

Kuala Lumpur (Jan 3): Gamuda Bhd’s unit is acquiring eight parcels of freehold lands in Rawang collectively spanning 532 acres for RM360 million.

Gamuda said its wholly owned subsidiary Gamuda Land (Botanic) Sdn Bhd is buying these lands from Kundang Properties Sdn Bhd for a mixed development with a gross development value of RM3.3 billion over a 10-year period.

Gamuda said these land acquisitions are synergistic to the group since they are located next to its existing 810-acre Gamuda Gardens township in north Sungai Buloh and is easily accessible via three major expressways, namely North-South Expressway, LATAR Highway, and Guthrie Corridor Expressway.

“The development of the subject land following the Kundang Jaya acquisition is planned as an extension of the existing Gamuda Gardens township and aims to offer Gamuda’s branded homes with the right product concept and price to differentiate from other developers,” said the group in a Bursa Malaysia filing on Tuesday (Jan 3).

Gamuda said the acquisition, which is estimated to be completed by the end of the second quarter this year, will be funded by internally generated funds and borrowings.

Commenting on the acquisition, Gamuda Land’s chief executive officer Chu Wai Lune said this acquisition will strengthen the group’s presence in northern Klang Valley where it has already developed and invested substantially in Gamuda Gardens.

“Today, we see an overall average uptake of more than 90% for all landed properties launched here since 2017. The new acquisition will help to replenish Gamuda Land’s landed residential offerings in the area as a continuation to the success of Gamuda Gardens. We anticipate a greater uptake for our future products with the upcoming retail, leisure and commercial properties in the next two years to tailor for the burgeoning market in this area,” he said in a statement on Tuesday (Jan 3).

“The new acquisition will unlock toll-free access from Gamuda Gardens to Rawang town, which will drive traffic to and from Gamuda Gardens and bring in substantial footfall. With this connectivity, the retail, leisure and commercial activities in the township can benefit from a wider catchment. At the same time, our residents from both parcels will have easy access to all the amenities within a short distance away,” he added.

Gamuda said purchasers of Gamuda Gardens have seen an increase in their investment, with the first phase of terrace homes, launched in 2017, transacting up to 20% appreciation today.

The group said these new lands are targeted for a 2026 launch and will contribute to the group’s earnings over the following six years as Gamuda Land continues to focus on high-value opportunities both in Malaysia and overseas where it has established its presence, namely Vietnam, Australia, Singapore and the UK.

Currently, the group said Gamuda Land’s remaining landbank stands at 3,344 acres amounting to RM55.3 billion in GDV with a total development period of 15 years.

These landbanks are spread across Malaysia, Vietnam, Australia, Singapore and the UK.

Shares of Gamuda were unchanged at RM3.75 at noon market break, valuing the group at RM9.81 billion.