Nov. 9, Kuala Lumpur: For RM30.93 million, a Caely Holdings Bhd wholly-owned subsidiary has offered to purchase three Penang freehold land lots for residential and commercial development.

The group stated in a filing with Bursa Malaysia today that Caely Development Sdn Bhd and GTM Property Management Sdn Bhd had reached a conditional sale and purchase agreement for the three plots of land, which together measure approximately 21,106.89 square meters.

The producer of women’s pants stated that the planned acquisition “would position the Group as an upcoming property developer in Penang” and bodes well for its plan to grow and establish its presence in other States.

The management believes that both domestic and overseas buyers will continue to have a good demand for Penang’s residential real estate.

Although it was too early to determine the precise product mix, total costs to complete the intended project, or estimated profits to be derived because the development plan is still pending finalization, Caely added that the acquisition is in line with the group’s overall strategy to acquire a land bank for potential development in strategic locations with high development value.

However, considering the land’s advantageous location and assuming no unanticipated events arise, the Board is certain that, based on initial market analysis, the planned residential and commercial project would boost the group’s profits when it is implemented.

It is anticipated that a mix of bank loans and internally generated funds will be used to finance the purchase.

It is anticipated that the intended land acquisition would be finished by the first quarter of 2019 barring any unforeseen events and subject to the fulfilment of the antecedent conditions outlined in the agreement.

Today, Caely closed at RM1.08, down two sen, or 1.82%, with a market valuation of RM87.49 million.