KUALA LUMPUR (March 4) — Gadang Holdings Bhd has entered into an agreement to acquire an 11.18-acre land parcel in Johor Bahru for RM75.48 million, paving the way for a proposed mixed-use project with an estimated gross development value (GDV) of RM800 million.
In a filing with Bursa Malaysia, the group said its wholly owned subsidiary, City Version Sdn Bhd, signed a conditional sale and purchase agreement with Tanahmas Kapital Sdn Bhd, a unit of Ekovest Bhd, to formalise the transaction.
The acquisition is subject to approval from the Economic Planning Unit (EPU) and the issuance of an amended development order to facilitate the revised project concept.
Gadang’s proposal envisions a two-phase development. The initial phase will feature shop offices, while the second phase is planned with a 1:4 plot ratio to accommodate serviced apartments and a multi-storey car park. The overall project is expected to be carried out over a seven-year timeframe.
Under the existing development order granted in September 2016, the land is approved for 86 shop offices and two blocks of small office home office (SoHo) units at a lower plot ratio of 1:2.10.
Strategically located along Jalan Tampoi, the site is within one kilometre of Gadang’s completed Jentayu Residensi project. It also enjoys connectivity via the Pasir Gudang Highway and is close to established commercial landmarks such as Angsana Mall, Paragon Market Place and Central Park Business Boulevard.
The group considers the RM75.48 million purchase price reasonable, given the site’s location, connectivity and projected development potential. Funding will be sourced from a combination of internally generated funds and bank borrowings, with completion targeted for the fourth quarter of 2026.
Shares in Gadang closed one sen lower at 20 sen, giving the company a market capitalisation of approximately RM156.69 million.
Although this acquisition is in Johor, it reflects a broader trend among Malaysian developers actively replenishing their land banks to support future earnings growth — a strategy equally relevant in Kuala Lumpur and Selangor.
In the Klang Valley, demand fundamentals remain particularly resilient for commercial property in KL, especially mixed-use schemes integrating retail and office components. Developers with exposure to office space in Bukit Jalil and other decentralised business hubs continue to benefit from corporate decentralisation and infrastructure-driven growth.
Similarly, the industrial segment remains a cornerstone of Selangor’s real estate market. Rising manufacturing activity and logistics expansion are sustaining demand for industrial land in Selangor, including established corridors that support factory in Puchong operations and industrial property in Subang area developments.
Land acquisitions with strong connectivity and clear development strategies — such as Gadang’s latest move — highlight the importance of location, plot ratio optimisation and phased execution. These principles remain equally critical for investors evaluating commercial and industrial opportunities across Kuala Lumpur and Selangor’s mature and emerging growth corridors.
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