KUALA LUMPUR (April 18): DPS Resources Bhd has proposed to acquire 253 acres of freehold land in Melaka for RM45.60 million, to undertake mixed development projects.

The acquisition is part of the group’s strategy to expand its land bank and enhance its presence in the property market in Melaka, the manufacturer of rubber wood furniture and roof trusses said in a stock exchange filing.

The group said it will fund the purchase of the land from Pakatan Simbol Sdn Bhd via a combination of internally generated funds and bank borrowings.

DPS expects to develop the land which is located near Alor Gajah into a mixed development consisting of shoplots, affordable homes, semi detached houses, terrace houses, bungalow houses, townhouses and apartments.

The development is expected to commence between 2024 and 2025, and take six- to eight years to complete.

The estimated total gross development value of the project is RM750 million, while the gross development cost is expected to be RM450 million.

“Our group is expected to derive an estimated gross development profit of approximately RM300 million over the duration of the development project,” DPS said.

DPS shares closed unchanged at nine sen on Tuesday (April 18), valuing the group at RM63.48 million.