PETALING JAYA (April 29): MKH Bhd's wholly-owned subsidiary, Serentak Maju Corporation Sdn Bhd is acquiring a freehold parcel in Semenyih, Selangor for RM42.2 million from Inch Kenneth Kajang Rubber Public Limited Company.
The land covers approximately 6.03 hectares (14.91 acres). Located along Jalan Bangi Lama, it is currently planted with palm oil trees, said the property developer in a bourse filing yesterday.
MKH deems the location to be strategic, further complemented by surrounding developments, including Serene Heights and Universiti Kebangsaan Malaysia.
MKH plans to develop the site into a residential and commercial project, with an estimated gross development value of RM170 million.
Under the terms of the sale and purchase agreement, the company has already paid RM21.1 million. This includes a RM19.84 million payment to Inch Kenneth Kajang and RM1.27 million, which represents 3% of the total purchase price, placed with the vendor's solicitors for Real Property Gains Tax retention.
The remaining balance of RM17.6 million will be paid within 14 days after an application to convert the land's use to "commercial" is submitted to the Land Office. Additionally, RM3.5 million will be held by MKH’s solicitors to cover the land conversion premium.
MKH stated that the acquisition will be funded through a combination of internally generated funds and bank borrowings.
Despite the significant investment, the company said that the deal will not materially impact its consolidated net assets or gearing for the financial year ending Sept 30.
“The proposed residential and commercial development on the land augurs well for the Group’s future growth and earnings prospects,” MKH stated.
Source: Edgeprop.my
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