(The definitions used in this announcement shall have the same meanings as those used in the announcement dated 5 September 2023 unless otherwise stated) 

We refer to the announcement made on 5 September 2023 and the email dated 7 September 2023 from Bursa Malaysia Securities Berhad (“Bursa Securities”) requesting additional information pertaining to the Proposed Acquisition.   

The Board of Directors of LPB wishes to announce the following additional information as requested by Bursa Securities:-

1. The Method of Valuation Used by the Valuer in Arriving the Market Value

The market value of the Building is at RM55,000,000.00/- as appraised by the Valuer, Laurelcap Sdn. Bhd. on 17 August 2023 by utilising the Comparison Method of similar properties.

2. Easement of the Building

2.1 Payment of fees

The nominal easement fee is RM10.00/- (Ringgit Malaysia Ten Only) for all easements granted and is a one-off fee to be paid to the Vendor.

2.2 Duration of easement

The Vendor has agreed to grant an easement to the Purchaser for a period of 99 years, which shall commence on the Completion Date.

3. Rationale and Benefits of the Proposed Acquisition

The acquisition of the office tower aligns with LPB’s growth strategy, as we are currently in expansion mode and have increased our headcount. The location of the 3 Damansara office tower is strategic, as it sits between our key projects in the northern states (Kedah and Perak) and our oncoming sizable projects in Johor.

Notably, the office tower enjoys a prime position at the intersection of the SPRINT and LDP highways. This prime location not only enhances Lagenda's brand visibility and reputation but also positions us favourably to attract top talent and significantly boosts foot traffic to Lagenda’s sales gallery. Ultimately, for us to keep providing affordable housing to the underserved market, we need to attract capable talents within the industry and a centralised location will allow us to achieve this and foster a sense of unity amongst our employees and stakeholders.

In addition:

a) LPB expects that based on our current growth plans and to ensure a collaborative workspace from a centralised office location, LPB will occupy 30% - 40% of the Building;

b) Upon completion of the Proposed Acquisition, all the current tenancies will continue and will be novated to the Purchaser, as allowed by the current tenancy agreements. The gross rental income from the existing tenancies amounts to RM132,464.00/- per month and LPB will carry out steps to ensure that any unutilised space is maximised for additional income; and

c) Over and above income from the tenancies, LPB will also seek to add on additional revenue streams from the Building such as from the lease of advertising spaces, rooftop lease for telecommunications equipment and the supply of utilities to tenants.

This announcement is dated 8 September 2023.