KUALA LUMPUR (Dec 15): Scientex Bhd is buying a 335.5686-acre piece of freehold land in Pulai, Johor for RM284.19 million cash, which it hopes to develop into a mixed property development.
Scientex said the proposed land acquisition will enable it to boost and expand on its existing landbank in Johor. “The land will also provide the group adequate landbank to sustain its property development over the medium and longer term,” the company said in a Bursa Malaysia filing.
However, it said it is currently too preliminary to ascertain the exact total gross development value, development cost, the expected commencement and completion dates of the development and the expected profits to be derived from the development of the land.
Scientex added its dormant wholly-owned subsidiary Amber Land Bhd (formerly known as Great Wall Plastic Industries Bhd) has entered into a sale and purchase agreement with DKTMG Land Sdn Bhd for the proposed land acquisition.
It said the land is a freehold agriculture land located adjacent to the existing Taman Pulai Indah and Bandar Baru Kangkar Pulai in Skudai. Presently, there is a Hindu temple which sits near the boundary of the land in an area of less than one acre, which will be dealt with in accordance with terms and conditions of the agreement.
Scientex however highlighted that the land is currently subject to two private caveats lodged by Low Boon Lai, a shareholder of DKTMG Land, and Civic Project Management Sdn Bhd, a company related to a shareholder of DKTMG Land.
It intends to fund the proposed land acquisition by internal funds and bank borrowings.
Barring any unforeseen circumstances, the proposed land acquisition is expected to be completed in the second half of 2018.
Scientex shares closed up 17 sen or 1.98% at RM8.77 today, bringing it a market capitalisation of RM4.24 billion.
Source: The Edge Markets