Scientex unit buys more land in Johor, this time from PNB unit for RM299.84m

KUALA LUMPUR (July 11): Scientex Bhd, which is in the midst of acquiring 960 acres of prime freehold land in Tebrau, Johor from S P Setia for RM547.56 million, is buying another 550.67 acres of land in Kulai, also in Johor, for RM299.84 million.

In a bourse filing on Tuesday (July 11), Scientex said its indirect subsidiary Scientex Lestari Sdn Bhd has inked a conditional sale and purchase agreement with Seriemas Development Sdn Bhd to acquire the six parcels of land in Kulai to increase its landbank.

Seriemas, according to Scientex, is a wholly owned unit of PNB Development Sdn Bhd, which is in turn wholly owned by Permodalan Nasional Bhd (PNB). Scientex Lestari is a joint venture between Scientex’s wholly owned Scientex Quatari Sdn Bhd, which holds a 70% stake, and Datuk Azman Mahmud, who holds the remaining 30% stake.

There was no valuation carried out on the lands, Scientex said, and its board could not disclose the seller’s net book value, as it is not privy to the information.

The group plans to finance the purchase using internal funds and bank borrowings. It said the price tag was arrived at after taking into consideration the plots’ strategic location, accessibility and surrounding mature amenities.

Scientex Lestari plans to develop the land into a mixed-development property, comprising about 7,000 affordable houses. “It is currently too preliminary to ascertain the exact total gross development value, development cost, the expected commencement and completion dates of the development, and the expected profits to be derived from the development of the lands,” Scientex said.

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

“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. The lands will provide Scientex the opportunity to create greater economic value and increase the earnings potential over the medium- to long term, as the lands have promising development potential,” it said.

Last week, Scientex Lestari inked a conditional sale and purchase agreement with Pelangi Sdn Bhd, a wholly owned unit of S P Setia, to acquire the 960 acres of Tebrau land. In 2021, Scientex had previously attempted, via Scientex Quatari, to buy the same plots of land for RM518.1 million. But the deal had to be aborted in March this year, after Scientex failed to obtain a waiver of the bumiputera equity condition imposed by the Economic Planning Unit.

Scientex shares closed two sen or 0.58% higher at RM3.44 on Tuesday, giving it a market capitalisation of RM5.34 billion.

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Scientex inks new deal to buy Johor land from S P Setia, now for RM548 mil