KSL buys freehold land in Johor for RM103mil

KUALA LUMPUR: KSL Holdings Bhd’s wholly-owned subsidiary KSL Medini Development Sdn Bhd has entered into a sale and purchase agreement with Tropicana GP Views Sdn Bhd to purchase 10 parcels of freehold land in Pontian, Johor for RM102.94mil.

In a filing with Bursa Malaysia yesterday, KSL said the parcels of land, measuring 21.81ha, will be used for residential development projects and further enhance its presence in the property market in Johor.

“Once the acquisition is completed, the land bank of KSL Group will be 1,011.71ha in Segamat, Batu Pahat, Muar, Mersing, Johor Baru, Kuala Lumpur and Klang.

“Out of the total land bank, 49% is in the various stages of approval and 23% is under various stages of development,” it said.

The group said the development project is expected to commence in 2024 and is envisaged to spread over 10 years.

Based on the board’s estimation, the total gross development value of the project will range from RM345mil to RM395mil; whilst its gross development cost is expected to be around RM188mil.

“Accordingly, an estimated gross development profit of between RM157mil and RM207mil is expected to be derived for the group over the duration of the said development,” it said

Meanwhile in separate development, Mah Sing Group Bhd’s wholly owned subsidiary, Klassik Tropika Development Sdn Bhd, has entered into a sale and purchase agreement with Morningjoy Sdn Bhd to dispose of freehold land in Penang for RM66.33mil cash.

The property group said the disposal is expected to generate a gain of RM1.8mil upon completion after deducting all the estimated expenses for the exercise.

The freehold land, measuring 13,694.95 sq m, is located at Bandar George Town.

The disposal is expected to be completed in the fourth quarter of 2022.

“The proposed disposal is in line with the group’s strategy to focus more on the M-Series type of residential land for development of affordable properties that are in line with current market demand,” it said in reference to one of its property products.

Mah Sing said the disposal of the land and replacing it with the M-Series type of land with a faster turnaround time would help optimise the efficiency of the group’s landbank.

The exercise has no impact on the issued share capital and the shareholdings of the substantial shareholders of Mah Sing as it does not involve any issuance of new ordinary shares in the group, the property developer said. — Bernama

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