Ibraco wants to buy land near NPE for RM37mil

PETALING JAYA: Sarawak property developer Ibraco Bhd has proposed to acquire four plots of vacant leasehold land located along the New Pantai Expressway (NPE) for RM37.44mil, in a move to expand to Peninsular Malaysia.

The company, which has developments in Kuching and Bintulu, told the stock exchange that it had entered into separate sale and purchase agreements with Milan Sanctuary Sdn Bhd and Jurapat Sdn Bhd for the acquisition of the lands.

It said the land, measuring 15,811.66 square metres, was approved for mixed commercial development, but the company plans to apply for a new development order in due course.

“The company has yet to determine the budgeted gross development value and gross profit to be generated from the devel- opment of the land at this juncture,” it said.

Ibraco said 30% of the purchase price would be satisfied in cash from internally generated funds while the balance would be via bank borrowings.

Based on its financial statements for the year ended Dec 31, 2016 and on the assumption that the acquisition had been effected on that date, the group’s gearing is expected to increase from 0.44 times to 0.52 times.