KUALA LUMPUR: Johor-based developer BCB Bhd is acquiring two vacant lands in Batu Daerah here for RM50.96 million in a bid to increase its landbank and enter the Klang Valley property market.

The developer, whose projects are primarily focused in Johor, said it intends to construct high-end condominium on the two parcels of land measuring a total of two hectares.

"The land acquisition would increase our landbank and provide sustainable earnings over the medium term in view of the favourable outlook of the land location," BCB said in a statement to Bursa today.

The company also said the acquisition would improve its market share and enhance its product variety.

In an announcement to Bursa Malaysia today, BCB said it has entered into a sale and purchase agreement (SPA) with Warta Development Sdn Bhd and Yap Khay Cheong & Sons Realty Sdn Bhd to acquire the two parcels of freehold land for RM48.85 million.

The purchase consideration was arrived after taking into consideration the land's location and potential development. The remaining land conversion premium of RM2.11 million would be paid after the SPA is signed.

BCB intends to finance 70% of the purchase consideration through bank borrowings and the rest by internally generated funds, it said.

The company said the acquisition would not have any effect on the earnings per share and net asset for the FY10 ending June 10.

"However, the proposed development of the land is expected to contribute positively to the earnings of BCB in the future years," it said.