Image source: ivory.com.my

Ivory Properties plans to purchase RM65 million worth of freehold land in Penang. As stated during a filing with Bursa Malaysia, the property developer plans to build a mixed development project on the 8,093 sqm of land.

The purchase of the land is from Zenith Urban Development Sdn Bhd, and Ivory Properties plan to acquire the land via 70% of bank borrowings and 30% of internally generated funds.

Upon completion of the purchase of the land, the landbank and joint venture development rights of Ivory Properties will increase from 84 acres to 86 acres. The proposed acquisition will not affect the company’s net assets per share and earnings per share for the financial year ending Dec 31, 2020 (FY20).

The Group, however, expects their gearing to increase by 0.42 times from the current 0.31 times, totalling RM45.5 million, if 70% of the property purchase is financed by the banks.

The Group states that purchasing the land is a strategic move and in line with their strategy to strengthen its foothold in Penang whilst increasing its landbank in strategic locations with potential for growth.

According to the developer, “Given its strategic location which is sea-facing and development potential of the property, the proposed acquisition will present synergistic opportunity to Ivory Group to scale up its development in the said vicinity, by capitalising on its already-established presence within that vicinity and complementing Ivory Group’s existing development projects.”

The purchase is estimated to be completed by mid-2020 if all runs smoothly.

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(12th November 2019)