While the acquisition is to expand its land bank, the company said in a filing with Bursa Malaysia that the exact purpose of the land has not been decided and it would make the appropriate announcements in due course.
“The land is strategically located along Jalan Sentul Pasar and is easily accessible via Duta-Ulu Kelang Express (Duke) highway, Sentul Link and Middle Ring Road 2 (MRR2),” it noted.
The property developer said the acquisition is expected to be completed by April this year.
KPPB’s subsidiary Kerjaya Property Sdn Bhd has inked the sales and purchase agreement (SPA) with Sunsuria Genlin Development Sdn Bhd yesterday. KPPB said the funding would come from internally generated funds and bank borrowings.
“A deposit of RM3.01mil shall be paid upon the execution of the SPA.
“The balance of RM27.12mil shall be paid by the purchaser to the vendor’s solicitors as stakeholders within three months from the date of the SPA, with an automatic extension of two months subject to late payment interest at 6% per annum,” it added.
The proposed acquisition does not require approval from any relevant authorities.
It is not expected to have any impact on the company’s earnings or earnings per share for the financial year ending March 31, 2021.