SINGAPORE (Sept 28): Aspen (Group) Holdings’ wholly-owned subsidiary, Aspen Vision Development (Central), has entered into a sale and purchase agreement to acquire a plot of freehold land in Selangor, Malaysia for 66.7 million ringgit ($21.5 million).
Spanning some 22,954 sqm, the currently vacant land is located in a matured township known as Kajang, approximately 30km from the Kuala Lumpur city centre.
It has been approved for a proposed development of two blocks of residential properties comprising Small Office Home Office (SOHO) and serviced apartments, one block of 9-storey podium car parks, sixteen retail units, and other facilities.
The acquisition is expected to be funded by bank borrowings and internal resources.
Aspen says it intends to utilise approximately $2.15 million of the net proceeds from its initial public offering to satisfy the payment of the 10% deposit, which is to be paid upon execution of the agreement today.
The company had allocated $25 million from net proceeds of the IPO for the acquisition of land banks and future developments.
Aspen says the acquisition is not expected to have any material impact on its consolidated net tangible assets per share or earnings per share for the current financial year ending Dec 31, 2017.
Shares in Aspen closed flat at 23 cents on Thursday.