Chin Hin Group Property (CHGP) Berhad, formerly known as Boon Koon Group Berhad plans to undertake a commercial development comprising office lots on a piece of vacant leasehold land, located about 4.8km south-west of Kuala Lumpur.
The developer is buying the land from Suez Domain Sdn Bhd, a company linked to Sunsuria Bhd founder and executive chairman Tan Sri Ter Leong Yap and his brother, Datuk Ter Leong Hing.
According to a recent filing with Bursa Malaysia, the existing shareholders of Suez Domain are Leong Yap, Leong Hing, Sunsuria City (KL) Sdn Bhd, Sunsuria Development Sdn Bhd, Sunsuria Holdings Sdn Bhd, Excel Logic Sdn Bhd, Kota Serumpun Development Sdn Bhd, and Suez Capital Sdn Bhd.
The filing shows that Leong Yap owns shares in Sunsuria Holdings, the holding company of Sunsuria Development, which in turn is the holding company of Sunsuria City.
Sunsuria City holds more than 20 per cent equity interest in Excel Logic, which in turn is a holding company of Kota Serumpun Development.
CHGP said that BK Alliance Sdn Bhd had on January 13, 2021, entered into a sale and purchase agreement to acquire the land from Suez Domain for RM20.914 million.
BK Alliance is 51 per cent-owned by BKG Development Sdn Bhd, which in turn, is a wholly-owned subsidiary of CHGP. Atlantic Blue Holdings Sdn Bhd holds the remaining 49 per cent stake in BKG.
CHGP said in the filing that the purchase price was arrived at in view of the development order and building plans for the site, and the piling works completed.
It said the acquisition is in line with the overall strategy of CHGP group, and to expand its property development segment.
The group is continuously sourcing for new land banks at accessible locations for potential developments, it said.
“The acquisition will enable CHGP to enlarge the present land banks and contribute positively to the earnings of the group through future developments,” it said.
However, CHGP said that it is too preliminary to ascertain the total development cost and the expected profits to be derived from the proposed development as BK Alliance will be submitting a revised proposed development plan and building plan to the relevant authorities for approval.
“Based on preliminary plans, CHGP intends to undertake a commercial development on the property comprising office lots,” it said.
CHGP said that Suez Domain had previously applied for the express condition of the land to include carparks which has been approved by the land office, but was not endorsed on the registered document of title of the said property.
Barring any unforeseen circumstances, the acquisition is expected to be completed by end of June 2021, it said.
CHGP ventured into the property development segment with the setting up of BKG following a major restructuring in 2017 which saw changes in the directorship of the group.
One of BKG’s projects is AERA Residence in Petaling Jaya, which it is jointly developing with Platinum Eminent Sdn Bhd, a subsidiary company of Chin Hin Property Development, controlled by CHGP Group founder Datuk Seri Chiau Beng Teik.
The other projects are Novum Bangsar South, which is a joint venture with Kedah-based Eupe Corp Bhd, and 8th and Stellar, in Sri Petaling, Kuala Lumpur.
The 8th and Stellar project with a gross development value of RM460 million comprise a 10-storey office building, 138 units of small office, home office (SoHos), and 522 serviced apartments.