Scientex to develop a new property project in Johor

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KUALA LUMPUR: Scientex Bhd is acquiring two parcels of land measuring 121.2 acres in Kulai, Johor, for RM123.64mil where it plans to undertake a mixed property development.

The property developer, which also makes packaging films and packing bands, told Bursa Malaysia that its unit Scientex Quatari Sdn Bhd (SQSB) had entered an agreement to buy the land from Dahlia Utama Sdn Bhd, an oil palm estate owner that is wholly owned by Singapore-based Lee Rubber Co (Pte) Ltd.

The land is located along the North-South Highway (south bound) and Senai Highway, to the south of Taman Aman Senai, Johor.

On the project to be developed on the land, Scientex said it was currently too preliminary to determine the exact total gross development value, development cost, the expected starting and completion dates of the development and the expected profits to be derived from the development.

The total purchase consideration was arrived at on a willing-buyer willing-seller basis, after taking into consideration the development prospect of the land.

“There is no valuation carried out by Scientex or SQSB on the land and the board of directors of the company is unable to disclose the vendor’s net book value of the land as this information is not privy to SQSB,” it said.

Scientex said the close proximity between its existing Senai and Pulai developments and the proposed development would enable the company to tap on operational efficiencies and generate better margins through economies of scale to be achieved during project implementation.

The proposed acquisition, which is subject to the Estate Land Board’s approval, is expected to be completed in the second half of next year.