Scientex buys lands in Penang for RM246.67m

KUALA LUMPUR (April 5): Scientex Bhd is acquiring three pieces of freehold agriculture land in Penang for RM246.67 million.

The group said in a bourse filing that its wholly-owned subsidiaries Scientex Quatari Sdn Bhd and Scientex (Skudai) Sdn Bhd had entered into two sale and purchase agreements in relation to the proposed acquisition.

The first agreement is to acquire a piece of freehold agricultural land at Seberang Perai Utara, measuring approximately 82.84 hectares for RM147.13 million.

The second agreement is to acquire two pieces of freehold agricultural land at Seberang Perai Utara with an aggregate area of approximately 560,492 square meters for RM99.55 million.

The proposed acquisitions will be funded by internally-generated funds and bank borrowings, it said.

Scientex also said the proposed acquisitions represented a strategic investment opportunity to increase and boost the existing landbank of the group.

It said the positive response received by Scientex for its maiden development located at Tasek Gelugor, Penang indicated there was still strong and robust demand for affordable homes in Penang and Scientex intends to leverage on this demand to further expand its affordable homes brandname to other parts of Penang.

“The close proximity between Scientex’s existing development at Tasek Gelugor and the proposed development, which is located approximately 3km from its Tasek Gelugor development, will also enable Scientex to generate better operational efficiencies through greater economies of scale to be achieved during project implementation,” it said.

The landbank expansion is also in line with the goal of Scientex to build more affordable homes with an objective of completing 50,000 affordable homes throughout the nation by 2028, and enables it to meet the growing demand for such affordable homes in Penang, as envisioned in the state’s goal of providing 220,000 affordable homes by 2030.

Scientex closed one sen or 0.25% lower at RM4.01 today, valuing the group at RM6.22 billion.

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