Gadang Holdings Bhd - Circular (Dated 8.4.2015)

9The approximate location of the Land is depicted below.

(Source: Valuation Report)

4. RATIONALE FOR THE PROPOSED ACQUISITION

The Proposed Acquisition will expand Gadangs land bank in location which has growth potential and further increase its presence in the property market in Klang Valley. The Proposed Acquisition is in-line with Gadangs strategy to expand the revenue and earnings contribution from its property development segment, which comprises the following on-going projects as at the LPD:

Project Name Location Development Estimated GDV (RM million)

The Vyne @ Sungei Besi (Phase 1 & 2)

Salak South, Kuala Lumpur

Condominiums 387.5

Rawang Industrial Land Rawang 2-Storey Detached Factory

32.0

Bandar Puncak Sena Pokok, Sena, Kedah Terrace houses 10.8

Capital 21 @ Capital City

Tampoi, Johor Bahru Retail, office suites and hotel suites

324.0

Total 754.3

Several projects with GDV in excess of RM1.0 billion were launched in the past three (3) years within the vicinity of Semenyih such as Setia Ecohill by SP Setia Berhad (2013) and Eco Majestic by EcoWorld Development Group Berhad (2014). The Setia Ecohill is a mixed development project with expected GDV of RM4.0 billion which includes Ecohill Park, Weeping Meadows lake gardens and the upcoming Tenby International School. Similarly, Eco Majestic, a mixed residential and commercial development has an estimated total GDV of RM4.0 billion. Other landmarks surrounding the Land including Mara Japan Industrial Institute, Kolej Tuanku Jaafar, University of Nottingham Malaysia Campus, Staffield Country Resort, Tesco Hypermarket, Econsave and Billion Supermarket contribute towards making it the centre of business and economic activity for the Kajang, Bangi and Semenyih vicinity.

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