KUALA LUMPUR: Property developer Dijaya Corporation Bhd expanded its land bank into the much sought after location in Jalan Ampang after signing an agreement to purchase a piece of land there for RM123.04 million.

Dijaya said yesterday it had entered into a sale and purchase agreement (SPA) on Tuesday to acquire the freehold property measuring about 5,196 square metres from Mercury Property Management Sdn Bhd.

Dijaya said the acquisition would create an opportunity for it to venture into the high-end property market given that available development land within the KLCC area was scarce. It intends to develop an integrated commercial development comprising an international hotel, serviced suites and office suites.

The purchase price was arrived at on a “willing parties” basis, it said, adding that the property was valued at an open market value of RM125.8 million based on the comparative method on Nov 11, 2009 by C H Williams Talhar & Wong Sdn Bhd.

The acquisition is expected to be completed by the first quarter of 2010 and would be funded by a combination of bank borrowings and internally generated funds.

This article appeared in The Edge Financial Daily, November 26, 2009.