Scientex acquires land in Johor for Rm200mil
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 plots of land, which has an aggregate area of 442.7566 ha, 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 land.
The group said the plots of land 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 in view of 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.
The group will be able 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 plots of land 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.