Scientex proposes land purchase in Kulai for RM299.84mil

KUALA LUMPUR: Scientex Bhd's indirect subsidiary Scientex Lestari Sdn Bhd has entered into a conditional sales and purchase agreement with Seriemas Development Sdn Bhd for the proposed acquisition of six parcels of freehold land in Mukim Senai in Kulai, Johor, for RM299.84mil.

In a filing with Bursa Malaysia, the group said the it proposes to develop the tracts of land, measuring a combined 550.67 acres, into a mixed-property development comprising about 7,000 affordable houses.

According to Scientex, it will fund the proposed acquisition via internally generated funds and bank borrowings.

The proposed acquisition is expected to be completed in the first half of 2024.

On its rationale, Scientex said the proposed purchase will allow it to boost its existing landbank at a reasonable cost.

Meanwhile, the proximity between the group's existing developments and the development of the lands will enable it to generate better operational efficiencies through greater economies of scale during project implementation.

"The landbank expansion is also in line with the goal of Scientex Group to build more affordable homes to meet the Group’s objective of completing 50,000 affordable homes throughout the nation by 2028.

"The lands are expected to provide a steady and sustainable property development model as Scientex Group continues to focus on affordably priced landed properties where demand continues to remain firm and resilient," it said.

Scientex added that the proposed acquisition is not expected to have any material impact on its earnings, net assets and gearing for the financial years ending July 31, 2023, and July 31, 2024.