GEORGE TOWN (Sept 29): Takaso Resources Bhd, which is buying a 50% stake in a firm that owns a 0.3ha leasehold tract in Petaling Jaya, Selangor, for RM6 million cash, intends to carry out a RM45.5 million residential project on the land.

In a statement today, Takaso said it inked a conditional share sale agreement with A.W. Impian Land Sdn Bhd today for the deal with the vendors, Tan Teck Ang and Chen Ling Wah.

Takaso, a manufacturer of baby products, condoms and toys, said the acquisition is part of its plan to diversify its business into the property development sector, which it sees as the game-changer for the group.

“We are very pleased to have found this opportunity at a very good price and valuation. There are always opportunities during times of   crisis.

“Moving forward, property development will be the key driver in turning around Takaso,” said its executive director Billy Ong Kah  Hoe.

Ong added that Takaso would be submitting an amendment on the development order for the project, which has already been approved by the local council.

“With the amendments, the new development will consist of three blocks of three storeys  of town houses with common facilities that will make up 39 units in total, subject to approvals from the relevant government authority,” he   said.

He said the proposed development is expected to commence in a year, and expected to be completed in three years.

In its filing to Bursa Malaysia, the group further reasoned that the move would balance its income stream from non-traditional sources and lessen any future negative industry impact on its traditional business industry.

“Currently, Takaso’s businesses are very much dependent on global demand trends and economic outlook.

“The acquisition would balance out the over reliance on this as the construction and property development industry in Malaysia is consistently seen to be robust due to the investment preference of locals and even certain foreigners in preferring local real estate investments,” Takaso said.

The acquisition will be funded by a mix of internally generated funds and/or bank borrowings.

Takaso fell 1.5 sen or 3.03% to close at 48 sen today, with a market capitalization of RM101.8 million.