Singapore-listed Albedo is looking to move into property development after securing a deal to buy 762 acres of land in Iskandar Malaysia.
The steel and raw materials trader signed a non-binding framework agreement or memorandum of understanding (MOU) with Temasya Cergas for an undisclosed amount, media reports said. The sale will be paid up through an issuance of new shares to Temasya that will result in a reverse takeover of the company by Temasya.
The five land parcels range from 29 acres to 279 acres each, and are set to be developed into a mixed-use commercial and residential development as well as an integrated business park. Located in Gelang Patah, the vicinity of Setia Eco Gardens, the sites are to the north of Iskandar.
The move will allow Albedo to tap into new business areas after its profit margins from steel and raw materials trading fell due to stiff competition and weak demand.
Nikki De Guzman, Junior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email email@example.com