Haily Group buys freehold Johor land for RM6.45m

Haily Group Bhd's subsidiary, Haily Capital Sdn Bhd, has acquired a 176,690 sq ft freehold agricultural plot in Pulai, Johor Bahru, for RM6.45 million. The price reflects a 5.15% discount to an independent valuation of RM6.8 million. Completion is expected in Q4 2026.

PETALING JAYA (Oct 9) — Haily Group Bhd’s wholly owned subsidiary Haily Capital Sdn Bhd has agreed to acquire freehold agricultural land in Pulai, Johor Bahru, for RM6.45 million to support the group’s future development and operational requirements.

In a Bursa Malaysia filing on Thursday (Oct 8), Haily said its subsidiary signed a sale and purchase agreement (SPA) with the land’s registered owner, Kee Chin See, on the same day. The land measures approximately 176,690 sq ft and is held under Geran 32835, Lot 23025, in Mukim Pulai, Johor Bahru district.

According to the filing, the purchase price represents a discount of RM350,000, or approximately 5.15%, to the land’s market value of RM6.8 million, as assessed by independent registered valuer One Asia Property Consultants (South) Sdn Bhd in a valuation certificate dated Oct 2. Haily said the price was negotiated at arm’s length on a willing buyer, willing seller basis, taking into account the valuation and prevailing transaction prices of comparable land nearby.

The group described the acquisition as a strategic investment aligned with its long-term growth and expansion objectives. It expects the purchase to strengthen its asset base and support business expansion over the medium to long term.

The land will be acquired on an “as is where is” basis, free from encumbrances and with vacant possession, subject to its existing agricultural land-use category and title conditions. These include requirements to plant rubber and fruit trees and take measures to protect the land from erosion in accordance with orders issued by the land administrator.

The purchase will be funded through bank borrowings and internally generated funds, with the funding mix to be determined later. Haily said a 10% deposit of RM645,000 was paid to the vendor under an agreement to sell on Sept 10. The remaining RM5.805 million is payable within three months of the SPA date, with an automatic one-month extension carrying interest of 8% per annum, calculated daily on the outstanding balance. The group expects the acquisition to be completed in the fourth quarter of 2026, barring unforeseen circumstances.

Haily said the acquisition does not require approval from its shareholders or relevant government or statutory authorities. The company also said none of its directors, major shareholders or persons connected with them has any direct or indirect interest in the transaction. The acquisition is not expected to affect the group’s earnings or earnings per share for the financial year ending Dec 31, 2026, or materially affect its net assets. Its impact on gearing will depend on the eventual funding mix, Haily said.