LSH Capital accepts RAC land offer, expands property pipeline

KUALA LUMPUR: Lim Seong Hai Capital Bhd (LSH Capital) has accepted a Letter of Offer from Railway Assets Corp (RAC) to develop two plots of land in Selangor, marking a further expansion of its property development pipeline.

The proposed development covers about 7.04 hectares of RAC-owned land located in Pekan Country Heights, Selangor.

In a Bursa Malaysia filing, the construction and property development group said it accepted the offer on May 26, 2026, following its earlier announcement dated May 15, 2026 on the proposed project.

According to the earlier filing, the offer was made by RAC following a request for proposal (RFP) exercise for the sale and development of the land parcels. The total purchase consideration for the site is RM197.9 million, with the land earmarked for a property development project.

LSH Capital said the transaction remains subject to the execution of definitive agreements and completion of relevant regulatory approvals.

The group added that further announcements will be made to Bursa Malaysia Securities Bhd as and when there are material developments or upon finalisation of the agreement.

LSH Capital's net profit for the quarter ended March 31, 2026 (Q2 FY26) fell to RM18.6 million from RM21.58 million a year earlier, while revenue declined 6.7 per cent to RM99.45 million from RM106.6 million.

Despite the softer quarterly earnings, the group continues to build its development pipeline. This includes the LSH Bund project in Jalan Pahang with a gross development value (GDV) of RM500 million, and a mixed development in Setapak, with a GDV of RM403.9 million.

It also has the Jalan FR03 upgrading works in Kuantan in collaboration with Knusford Construction Sdn Bhd.

Shares of LSH Capital closed 2.22 per cent lower at RM1.76 in midday trading today, valuing the group at about RM1.48 billion.

The stock has surged roughly 117.28 per cent over the past year from a low of 79 sen about a year ago.