Maxim unit acquires Johor Bahru land for RM167mil

KUALA LUMPUR: Maxim Global Bhd’s 51 per cent-owned subsidiary, Maxim Pelangi Sdn Bhd, has entered into a conditional sale and purchase agreement with Pelangi Sdn Bhd for the proposed acquisition of 2.63 hectares (6.51 acres) in Plentong, Johor Bahru, Johor for RM167.0 million.

In a filing with Bursa Malaysia today, the property developer said it will satisfy the entire proposed acquisition in cash.

"The board is deliberating on the development plan for the land and is currently conducting feasibility studies to assess its risk-reward profile, depending on the prevailing property market conditions,” it added.

Independent valuer Knight Frank Malaysia Sdn Bhd valued the commercial land on Feb 26, 2024 at RM169.0 million on the comparison approach, the filing said.

On the rationale of the acquisition, the proposed acquisition is undertaken in line with the group's business strategy to expand its property development and construction business by increasing its landbank, or it may undertake further property development projects. - Bernama