Scientex acquires land in Johor for RM200mil


PETALING JAYA: Scientex Bhd via its wholly-owned subsidiary, Scientex Heights Sdn Bhd, has entered into a conditional sale and purchase agreement with Guan Hong Plantation Private Ltd for the proposed acquisition of 24 parcels of freehold land, all situated in Muar, Johor, for RM200mil.

In a filing with Bursa Malaysia, the packaging manufacturer and property developer said it has plans to develop the lands, which has an aggregate area of 442.7566 hectares, into a mixed-property development.

Scientex added it is still currently too early to ascertain the exact total gross development value, development cost, as well as the expected commencement and completion dates of the development and the expected profits to be derived from the development of the lands.

The group said the lands are surrounded by a mix of industrial and agricultural activities, along with notable landmarks such as Muar Furniture Park, Bukit Bakri Industrial Area and Bakri Bukit Muar Airfield.

Scientex said the proposed acquisition will be funded by internally generated funds and bank borrowings.

The group noted that given rising property prices and robust demand for affordable homes from the low and middle-income groups, the proposed acquisition represents a strategic investment opportunity for the group to create greater economic value and increase its earnings potential as it gains a better and stronger foothold in the more established Johor property market.

Scientex noted the lands are also expected to provide a steady and sustainable property development model, as the company continues to focus on affordably priced landed properties where demand continues to remain firm and resilient.

Moreover, the landbank expansion is also in line with Scientex’s goal to build more affordable homes to meet the group’s objective of completing 50,000 affordable homes throughout the nation by 2028.

The proposed acquisition is not expected to have any material impact on the earnings and net assets of Scientex for the financial years ending July 31, 2024 and July 31, 2025.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Scientex , acquisition

   

Next In Business News

Mah Sing acquires 5.24-acre land on Old Klang Road for M Aurora project
Trump win to worsen biggest selloff in ringgit bonds since 2020
FBM KLCI slides on profit-taking; tech and semiconductor stocks lead gains
China's Oct trade surplus with US widens to US$33.5bil
Bank Negara expected to keep OPR at 3% in 2025
China stocks fall again at open as investors brace for Trump presidency
Hup Seng shares rise after strong 3Q24 results, target price raised
Singapore bank DBS posts record quarterly profit, sees 2025 dip from tax changes
FBM KLCI opens higher, then slides on profit-taking
Ringgit opens higher despite stronger US dollar on Trump’s return to presidency

Others Also Read