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BUSINESS

Scientex units to acquire Penang land for mixed-property development

05/04/2021 08:52 PM

KUALA LUMPUR, April 5 -- Two wholly-owned units of Scientex Bhd, Scientex Quatari Sdn Bhd (SQSB) and Scientex (Skudai) Sdn Bhd (SSSB) have signed two sale and purchase agreements for three pieces of freehold agricultural land in Seberang Perai Utara, Penang.

The land worth RM246.67 million is intended for mixed-property development.

In this regard, SQSB proposes to acquire 82.84 hectares of freehold agricultural land held under Geran 57798 Lot 4358, Mukim 12, District of Seberang Perai Utara for RM147.13 million from Sunrich Conquest Sdn Bhd.

SSSB proposes to acquire two pieces of agricultural land held under Geran 19398 Lot 249 and Geran Mukim 288 Lot 248, located in Mukim 12, District of Seberang Perai Utara, Penang, from Titanium Greenview Sdn Bhd.

With an aggregate area of approximately 560,492.0823 square meters, the total purchase of the land is RM99.55 million.

In a filing with Bursa Malaysia, the group said the proposed acquisitions represent a strategic investment opportunity to increase and boost its existing landbank.

“The landbank expansion is also in line with Scientex Group’s goal to build more affordable homes, with an objective of completing 50,000 units nationwide by 2028.

“It will also enable the group to meet the growing demand for such affordable homes in Penang as envisioned in the state’s vision to provide 220,000 affordable homes by 2030,” it said.

It added that positive response received by the Scientex Group for its maiden development located at Tasek Gelugor, Penang indicates that there remains strong and robust demand for such affordable homes in Penang.

It therefore intends to leverage such robust demand to further expand its affordable homes brandname to other parts of Penang which are presently underserved and to the Northern region generally.

“However, 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,” it said.

The deal is not expected to have any material impact on the earnings and net assets of Scientex Group for the financial year ending July 31, 2021 and July 31, 2022.

At the close, Scientex shares fell 0.25 per cent to RM4.01.

-- BERNAMA

 

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