GRAND-FLO TO ACQUIRE ONGOING MIXED DEVELOPMENT PROJECTS

KUALA LUMPUR, March 2 -- Grand-Flo Bhd (GFB) plans to undertake two acquisitions, one of which involves land and project development rights of an ongoing mixed development project known as the Grand Ion Majestic (GIM).

The other acquisition involves serviced apartments and commercial retail lots of a two-third completed mixed development project known as Grand Ion Delemen (GID).

The projects have a residual gross development value of RM1.1 billion, according to GFB in a Bursa Malaysia statement.

It said the total purchase consideration for the proposed acquisitions amount to RM422.9 million, which will be satisfied by cash, assumption of liabilities and issuance of redeemable convertible unsecured loan stocks in tranches to the vendor, Galeri Tropika Sdn Bhd (GTSB).

The GID serviced apartments will be acquired by GFB at a bulk discount of 15 per cent, whilst the retail lots shall be rented back to GTSB for a five-year guaranteed rental yield of seven per cent per annum, creating a stable recurrent income and cashflow stream for the group.

Executive chairman/group managing director Datuk Seri Yap Ngan Choy said GFB is now fully focused on its property development division following the completion of the disposal of its enterprise data collection and collation system segment.

He said the proposed acquisitions form part of the group’s ongoing efforts to replenish and reinforce its presence in the property development sector.

“GIM and GID are the only other developments at the hilltop of Genting Highlands, thus providing great opportunities to tap into given the upcoming tourist attractions in the area,” he said.

In addition, he said GFB aims to undertake private placement exercises to raise over RM75 million to fund its current and upcoming property development projects.

Further to this, he said the group has also proposed a name change from GFB to NCT Alliance Bhd, subject to shareholders’ approval.

-- BERNAMA