AME Elite buys 176.45 acres in Pontian, Johor for RM199.84m
AME Elite Consortium Bhd is acquiring 176.45 acres of freehold land in Pontian, Johor for RM199.84 million cash, with preliminary plans for industrial development. The site is within the Johor-Singapore Special Economic Zone and located about 9km from the Second Link Expressway. The deal is expected
PETALING JAYA (Sept 10): AME Elite Consortium Bhd is proposing to acquire 176.45 acres of freehold land in Pontian, Johor, for RM199.84 million cash, with preliminary plans to develop the site for industrial use.
In a Bursa Malaysia filing on Thursday (Sept 10), AME Elite said its wholly owned subsidiaries Pulai Land West Sdn Bhd and Pulai Land East Sdn Bhd entered into four conditional sale and purchase agreements to acquire 28 parcels in Mukim Jeram Batu from Hak Soon Seng Plantation (M) Sdn Bhd, Jumbo Orchids Sdn Bhd and Asia Bricks (M) Sdn Bhd. The parcels comprise Lots 969 to 976 (excluding Lot 977), 978 to 980, 990, 1911 to 1913, 1921 to 1928, 1951, 2299, 2300, 2376 and 2592.
The land is located along Jalan Ulu Pulai, which links Jalan Gelang Patah-Ulu Choh and Pekan Nanas, about 9km from the Malaysia-Singapore Second Link Expressway and 26km from Singapore's Tuas checkpoints. AME Elite said in a separate statement that the site is within the Johor-Singapore Special Economic Zone (JS-SEZ).
Most of the parcels are currently categorised for agricultural use, while two are industrial land and one has no stated land-use category. The filing identifies the site's development potential as medium industry. AME Elite has not submitted a detailed layout plan for the proposed development and said it is too early to determine its gross development value (GDV), development cost, expected profit or development timetable.
The latest deal follows AME Elite's March agreement to acquire 31.8 acres in Senai for RM101.2 million. The company said the two acquisitions would add more than 200 acres to its remaining 295.3-acre land bank.
The RM199.84 million purchase price was agreed on a willing-buyer willing-seller basis and was about 0.08%, or RM164,286, below the RM200 million market value ascribed by independent valuer Knight Frank Malaysia Sdn Bhd in its valuation report dated Sept 8. AME Elite intends to fund the acquisition through internally generated funds. The group had about RM779.3 million in short-term funds, cash and cash equivalents as at June 30, based on its latest interim financial report. However, the company said the funding mix is indicative and may include external borrowings depending on the group's financial position.
The proposed acquisitions are subject to conditions including regulatory approvals, the removal of structures on certain parcels and the resolution of a breach-of-condition matter involving Lot 1911. The four agreements are interdependent and will be treated as a single en-bloc transaction. The acquisitions are expected to be completed by the first half of 2027.
