KUALA LUMPUR: Teck Guan Perdana Bhd is expanding its landbank in Sabah with the purchase of a parcel of land in Tawau for RM11.94mil.
The company, is a filing with Bursa Malaysia today, said wholly owned subsidiary Tawau Cocoa Estate Sdn Bhd had on Sept 2 entered into a sale and purchase agreement with Kebun Rimau Sdn Bhd for the purchase of one parcel of leasehold land measuring approximately 510.6 acres in Tawau.
"The Acquisition is currently planted with fruits and other crops (166 acres), facilities (21 acres), and the rest is undeveloped land (323.6 acres)," Teck Guan said.
There is no oil palm planted on the land.
Teck Guan said no valuation has been carried out on the land and the purchase price was arrived at based on a ‘willing-seller willing- buyer’ basis.
"The Acquisition would enable Tawau Cocoa Estate to increase its planted area and as a result, will increase fresh fruit bunch production and crop yield to meet the growing market demands in line with the projected growth of the palm oil industry," it said.
"With the expansion of Tawau Cocoa Estate’s planted area, the palm oil business of the Company is expected to be able to seize opportunities for future business expansion and growth," it added.
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