By BUSINESS TIMES
BOLTON Bhd, through its indirect wholly-owned subsidiary Kejora Harta Bhd, will develop a high-rise condominium within Penang’s tourism belt with an estimated gross development value of RM150 million.
The company expects the proposed residential development in Tanjung Bungah to contribute RM26 million profit over the development period.
“All development costs will be funded through bank borrowings and/or internally generated funds,” Bolton said in a statement to Bursa Malaysia.
Kejora has signed a sale and purchase agreement with North Borneo Cigars Sdn Bhd to acquire a 1.36ha freehold land in Penang for RM24.7 million.
Kejora also signed a share sale agreement with North Borneo Cigars to acquire the entire equity in North Borneo Cigars’ wholly-owned subsidiary, GLM Property Development Sdn Bhd, for RM300,000.
Bolton said the proposed acquisitions will be funded through bank borrowings and/or internally generated funds.
The development involves the construction of two tower blocks of 28 storeys each with a total of 396 units and a podium block comprising reception lobby, residence facilities and car park lots.
The project is expected to commence in the fourth quarter of this year and is expected to be completed in 2010.
“As the property already has the relevant planning permissions, Kejora will be able to immediately commence on the construction and marketing of the investment.
“This will ensure a shorter payback time for the investment and will be able to recognise the profit in the first year of acquisition,” Bolton said.
Bolton, which is primarily involved in property development, said the proposed acquisitions are in line with the group’s objective to replenish its land bank to generate long term sustainable income.
It said the proposed acquisitions are expected to contribute positively to the earnings and cash flow of the group in future financial years.