KUALA LUMPUR (Feb 20): MCT Bhd plans to fork out RM58 million cash to purchase a 1.57-acre parcel of land in Seputeh, Kuala Lumpur to serve as the site of a proposed residential highrise development carrying a gross development value (GDV) of RM320 million.

In a bourse filing on Monday, the property developer said the group’s wholly-owned subsidiary Ardent Residence Sdn Bhd (ARSB) inked an agreement with HPC Development Sdn Bhd for the acquisition.

Atop the land, the group has proposed to develop “Aetas Seputeh”, a residential development comprising two 38-storey blocks housing 126 units of luxury apartments.

It added that the project carries an expected total development cost of RM186 million and a GDV of RM320 million. The project is expected to commence in 2023 and is projected to be completed in 2027.

MCT said the land's purchase consideration was agreed on a 'willing buyer, willing seller' basis based on, among others, the RM55 million market value of the land as appraised by Knight Frank Malaysia Sdn Bhd on Dec 5, 2022, and Kuala Lumpur City Council’s approved development order for the two blocks of highrise apartments.

“ARSB intends to fund the proposed acquisition and the proposed development via a combination of internally-generated funds and/or bank borrowings,” it added.

MCT said the proposal would mark its first land acquisition in Kuala Lumpur and the project would serve as an extension of the group’s premium Aetas series.

“Aetas Damansara, which is a development featuring spacious luxury apartments, was launched in December 2020 [and] has seen a positive take-up rate of more than 80% to date,” the group said, adding that it hopes to replicate this success with the proposed development in Seputeh.

“Given the strategic location, well-equipped infrastructure and established public amenities surrounding the land, the group believes that the proposed development will contribute positively to the group’s future growth plans and earnings prospects moving forward,” it added.

Barring unforeseen circumstances, MCT said the acquisition is expected to be completed by the second quarter of 2023.