KSL acquires 53.89 acres from Tropicana GP for residential project

KUALA LUMPUR: KSL Holdings Bhd's wholly-owned subsidiary KSL Medini Development Sdn Bhd is acquiring 10 tracts of freehold land measuring a total of 53.89 acres in Mukim Jeram Batu in Pontian, Johor, for RM102.94mil.

In a filing with Bursa Malaysia, the property group said the land will be acquired from Tropicana GP Views Sdn Bhd, a wholly-owned subsidiary of Tropicana Corp Bhd.

It said in its rationale the lands are planned for a residential development project and will further enhance the group' presence in the property market in Johor.

"This said project is expected to entail approximately 628 units of residential properties.

"The development project is expected to commence in year 2024 and is envisaged to spread over a period of 8 to 10 years," it said.

Based on the board’s estimate, the total gross development value of the project will range from RM345mil to RM395mil while its gross development cost is expected to be about RM188mil.

Accordingly, KSL estimates a gross development profit of between RM157mil to RM207mil to be derived for the group over the duration of the said development.

Upon completion of the acquisition, KSL said its land bank will be about 2,500 acres in Segamat, Batu Pahat, Muar, Mersin, Johor Bahru, Kuala Lumpur and Klang.

Of the total land bank, about 49% are in the various stages of approval, and about 23% are under various stages of development, it added.