KUALA LUMPUR: DRB-Hicom Bhd is buying 116 hectares of land in Alor Gajah, Melaka for RM240mil cash from Tradewinds Plantation Bhd, a company controlled by its major shareholder Tan Sri Syed Mokhtar Albukhary.
The proposed acquisition, DRB-Hicom said in a filing with Bursa Malaysia today, involved the purchase of a total of ten contagious parcels of oil palm plantation from Eksklusif Persona Sdn Bhd (EPSB).
EPSB is a wholly owned subsidiary Tradewinds. Its original cost of investment for the land was RM6.81mil in 2009.
The contagious nine parcels of freehold land and one parcel of leasehold land has been approved for industrial use, DRB-Hicom said.
"Subject to the prevailing future property market conditions, the Group intends to commence development of the lands in 2022," it said.
"Pending the commencement of the development of the Lands and as the Lands are currently part of a larger oil palm estate managed by Tradewinds in the same location, the Group intends to obtain some recurring income by entering into an arrangement with Tradewinds for the rental of the Lands to Tradewinds."
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