KUALA LUMPUR: Damansara Realty Bhd (DBhd) has obtained the Economic Planning Unit’s (EPU) approval for a land acquisition which is part of its proposed RM141.5mil settlement agreement with Johor Corp (JCorp), allowing it to reduce its net current liabilities and return its balance sheet to health.

In a statement, DBhd said its associate company DAC Properties received the EPU’s approval on Nov 22, and has completed the acquisition of 53.14 acres of land for RM130.3mil from JCorp.

“With the completion of the acquisition, DBhd has met almost all its obligations under the settlement agreement with JCorp, and will reduce the group’s net current liabilities by RM132mil,” group chief executive officer Brian Iskandar Zulkarim said in the statement.

“The completion will mean a stronger balance sheet for DBhd, slashing our net current liability to RM23mil from RM155mil before,” he added.

Located in Tebrau, Johor Bahru, the land is part of DBhd‘s 63-acre Central Park being developed in partnership with the Hong Kong-listed Country Garden, within the strategically located Taman Damansara Aliff along the Pasir Gudang Highway.

“DBhd will still own about 10 acres within Taman Damasara Aliff after Central Park is completed. With this landbank acquisition and the good progress on Central Park, DBhd is on track to strengthen its property development arm,” Brian Iskandar said. 

Central Park is an integrated township comprising, amongst others, residential homes, commercial shop lots, and amenities, to be completely developed over the next six to eight years, with an estimated gross development value (GDV) of about RM3.5bil.

The settlement comprises two acquisitions of land by DBhd from JCorp for RM141.5mil cash, and a land swap. As part of its joint venture with Country Garden Malaysia, DBhd has already completed the payment of RM130.3mil of the total RM141.5mil settlement sum, leaving a balance of RM11.2mil to be paid.