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BUSINESS

Scientex units to acquire Penang Land for mixed-property development

06/04/2021 07:58 PM

KUALA LUMPUR, April 5 -- Scientex Quatari Sdn Bhd and Scientex (Skudai) Sdn Bhd propose to acquire three pieces of freehold agricultural land in Seberang Perai Utara, Penang worth RM246.67 million, for mixed-property development.

“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,” Scientex said in a Bursa Malaysia filing.

The group noted that 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.

“The 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.

“Therefore the group 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,” 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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