Chin Hin's subsidiary to undertake residential development with GDV of RM692.48 mil

TheEdge Thu, Oct 28, 2021 09:49pm - 2 years View Original


KUALA LUMPUR (Oct 28): Chin Hin Group Property Bhd is acquiring land in Kuala Lumpur for RM85 million to undertake residential development with an estimated gross development value (GDV) of RM692.48 million and gross development cost (GDC) of RM422.38 million.

In a statement on Thursday, the group said its wholly-owned subsidiary BKSP Autoworld Sdn Bhd (BKSP) has sealed a conditional sale and purchase agreement with Frazel Luxe Sdn Bhd to acquire 3.33 hectares of land to develop 824 apartment units and 823 units of affordable homes in Kuchai Road.

Chin Hin said the proposed acquisition augurs well for the group as it is strengthening its property development presence in the Klang Valley.

The purchase consideration will be funded via a combination of internally-generated funds, bank borrowings and fund-raising exercises.

Separately, Chin Hin is proposing to undertake a private placement of up to 10% of the issued ordinary shares of the company.

The proposed private placement will involve the issuance of up to 49.54 million new Chin Hin shares.

However, the actual number of the shares to be issued will be determined at a later date, after obtaining the relevant approvals.

Subject to the prevailing market conditions, the exercise may be implemented in multiple tranches, within six months from Bursa Malaysia’s date of approval.

The proposed private placement is expected to generate RM42.11 million, assuming all its warrants are fully exercised and 49.54 million placement shares are issued at an indicative issue price of 85 sen per unit.

About RM33.71 million will be used to fund various land acquisitions and RM8 million for repayment of bank borrowings.

BKSP is a wholly-owned subsidiary of BKG Development Sdn Bhd, which in turn is a wholly-owned subsidiary of Chin Hin.

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