Upcoming 43-acre mixed development by Hunza Properties Bhd., with an estimated gross development value of RM6bil.

Hunza Properties Bhd is buying 9.7 acres of freehold land in Penang for RM57.02mil to develop affordable houses for qualified buyers.

In a filing with the local stock exchange yesterday, Hunza said its wholly-owned unit, Diamaward (M) Sdn Bhd, had signed a sale and purchase deal with property developer WLB Properties Sdn Bhd to buy the land, located next to Hunza’s 43 acres in Bayan Baru.

Diamaward is also primarily involved in property development.

The group said the rationale for the deal was to build and develop affordable homes, in line with the Government’s call for more of such housing.

Under the proposed terms, Hunza is required to build and sell the affordable homes in the area to qualified buyers.

However, the number of such homes to be built has yet to be finalised.

“The proposed acquisition is not expected to have any material effect on the group’s earnings for financial year 2016.

“The total development cost and expected profits can only be determined once the development plan is finalised,” said the group, adding that details on funding the acquisition would also be finalised at a later date. The total consideration of RM57.02mil was arrived at on a willing buyer-willing seller basis, after considering the land’s market value, it said.

Source: TheStar.com.my