Scientex unit to buy land in Johor for RM299.84m to expand landbank

• “The land will provide Scientex the opportunity to create greater economic value and increase the earnings potential over the medium to long term as the land parcels have promising development potential.”

KUALA LUMPUR (July 11): Scientex Bhd is acquiring six parcels of freehold land measuring 550.67 acres in Kulai, Johor for RM299.84 million to increase and boost its existing landbank.

In a bourse filing on Tuesday (July 11), Scientex said its indirect subsidiary Scientex Lestari Sdn Bhd had inked a conditional sale and purchase agreement with Seriemas Development Sdn Bhd.

The company said Scientex Lestari proposes to develop the land into a mixed-development property, consisting of approximately 7,000 affordable houses.

“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 of the lands,” it said.

Scientex said the acquisition will be funded by internally generated funds and bank borrowings.

On the rationale, Scientex said the landbank expansion is also in line with the goal of Scientex Group to build more affordable homes to meet the group’s objective of completing 50,000 affordable homes throughout the nation by 2028.

“The land are expected to provide a steady and sustainable property development model as Scientex Group continues to focus on affordably priced landed properties where demand continues to remain firm and resilient,” it said.

“The land will provide Scientex the opportunity to create greater economic value and increase the earnings potential over the medium to long term as the land parcels have promising development potential,” it said.