Selangor Dredging Strengthens Petaling Jaya Land Bank with Strategic RM63 Million Commercial Site Acquisition

Kuala Lumpur — Selangor Dredging Bhd has moved to reinforce its development pipeline by acquiring a freehold commercial land parcel in Petaling Jaya for RM63 million, signalling continued confidence in established urban growth corridors within Selangor.

The 1.214-hectare site, located along Jalan Subang 2 in Taman Industri Penaga, sits within a mature industrial and commercial enclave and includes an existing building. The acquisition will expand the group’s land bank and support a future mixed-use or residential-led development with an estimated gross development value (GDV) of approximately RM507 million.

Prime Location within Established Industrial and Commercial Corridor

The land was purchased from Hectare Square Sdn Bhd at a price slightly above the RM59 million market valuation assessed by an independent professional valuer. Selangor Dredging cited the site’s strategic positioning within Petaling Jaya, strong surrounding infrastructure, and long-term redevelopment potential as key drivers behind the transaction.

Situated near established business zones, the site benefits from proximity to industrial property in the Subang area, making it attractive for future redevelopment aligned with evolving urban living and work-life trends.

Planned High-Rise Development with Family-Centric Concept

While detailed plans are still under review, Selangor Dredging intends to redevelop the site into a high-rise serviced apartment project, featuring expansive open areas and facilities tailored toward families. The proposed concept reflects shifting demand patterns in commercial property in KL and Selangor, where integrated living environments near employment hubs are increasingly sought after.

The development strategy also complements broader market activity involving industrial land in Selangor, nearby logistics hubs, and supporting office and residential components.

Funding Structure and Timeline

The acquisition will be financed through a combination of internal funds and bank financing, maintaining balance sheet flexibility. Completion of the transaction is targeted for the second quarter of the financial year ending March 31, 2027.

Market Response

Following the announcement, Selangor Dredging shares rose 6.38%, closing at 50 sen and valuing the company at approximately RM213 million in market capitalisation.