Avaland's RM86m Taman U-Thant land acquisition becomes unconditional

Avaland Bhd's RM86.04m purchase of three freehold land parcels in Taman U-Thant, Kuala Lumpur, has become unconditional. The 1.88-acre site, zoned residential, is planned for a high-rise development with an estimated GDV of RM700m, strengthening Avaland's luxury presence in the Klang Valley.

PETALING JAYA – Avaland Bhd’s proposed RM86.04 million acquisition of three adjoining freehold land parcels in Taman U-Thant, Kuala Lumpur, has become unconditional, the property developer announced Wednesday (Sept 2).

In a Bursa Malaysia filing, Avaland said its indirect wholly owned subsidiary Nexus Advertising Sdn Bhd (NASB) received confirmation from its solicitors that all conditions precedent under the sale and purchase agreement (SPA) had been fulfilled, with the SPA becoming unconditional on the same day.

NASB signed the conditional SPA with Tong Ah Company Sdn Bhd on April 28 to acquire the three parcels, which measure 7,612.63 sq m (about 1.88 acres) in aggregate. The land, comprising Lots 79, 80 and 81 in Section 89A, is currently zoned for residential use. Avaland plans to develop a high-rise residential project on the site, with a preliminary estimated gross development value (GDV) of approximately RM700 million.

Avaland said in April that it was still in the initial stages of development planning, and that development costs, funding, timeline and expected profit margins had yet to be determined, pending the submission and approval of detailed plans.

The RM86.04 million purchase price was arrived at on a willing-buyer, willing-seller basis following arm’s-length negotiations. CBRE WTW Valuation & Advisory Sdn Bhd valued the land at RM88 million as at March 26 using the comparison approach.

The acquisition will strengthen Avaland’s presence in the Klang Valley and expand its footprint in the luxury residential segment, following its Aetas Damansara and Aetas Seputeh developments. The site is located about 2km from Kuala Lumpur City Centre and is accessible via Jalan Ampang, Jalan Tun Razak and the Ampang-Kuala Lumpur Elevated Highway (AKLEH).

Under the SPA terms, the purchase consideration is to be settled entirely in cash. The balance of RM77.44 million is payable within three months from the unconditional date, with a 30-day extension available subject to interest of 8% per annum. Avaland intends to fund the acquisition through a combination of internally generated funds and bank borrowings, with the final funding mix to be determined later. The acquisition was expected to be completed by the first quarter of 2027, barring unforeseen circumstances.