Scientex proposes RM580.16m land buy beside four Pulai projects

Scientex Bhd has proposed acquiring 502.59 acres of freehold land in Pulai, Johor, for RM580.16 million to expand its development footprint beside four existing projects. The 14 parcels are priced at RM26.50 psf and are proposed for a mixed-property development.

Scientex Bhd has proposed acquiring 502.59 acres of freehold land in Pulai, Johor, for RM580.16 million to expand its development footprint beside four existing projects. The 14 parcels are priced at RM26.50 psf and proposed for a mixed-property development. Scientex said their proximity to its existing projects would improve operational efficiencies through greater economies of scale.

In a Bursa Malaysia filing on Tuesday (Oct 6), the group said its wholly-owned subsidiary, Scientex Quatari Sdn Bhd, had signed a conditional sale and purchase agreement with Pangkal Budiman Sdn Bhd on the same day. Pangkal Budiman, a subsidiary of Leong Hup Holdings Sdn Bhd, is the registered and beneficial owner of the land. Its principal activities are oil palm planting and property development.

The parcels adjoin Taman Pulai Mutiara, Taman Pulai Mutiara 2, Taman Pulai Duta and Taman Pulai Duta 2. Scientex said more than 90% of the units it had launched in Pulai had been sold. Located in Mukim Pulai, Johor Bahru district, the land is approximately 33km from Johor Bahru city centre and 5.5km from the Second Link Interchange.

Scientex said the acquisition would support its continued focus on affordably priced landed properties and its goal of completing 50,000 affordable homes nationwide by 2028. The group said it was too early to determine the proposed development's gross development value, development cost, expected profits or commencement and completion dates.

The parcels cover about 21.89 million sq ft and comprise PTD 137110, PTD 137111, PTD 203922, PTD 137113 and PTD 137114, and Lots 93841, 93843, 93844, 93845, 93846, 93847, 93848, 93849 and 93850. The titles carry an agricultural land-use category and are recognised as block titles under Johor land administration requirements.

The acquisition is conditional on Johor Land and Mines Office approval to renew the block titles, Estate Land Board approval for the transfer, and any required transfer approval from the Johor Land and Mines Office. Scientex's shareholder approval is not required. The conditions are to be fulfilled within nine months of the agreement, with an automatic three-month extension and provision for further extensions by mutual written agreement. Subject to fulfilment of the conditions, the acquisition is expected to be completed in the second half of 2027.

Scientex will fund the purchase through internally generated funds and bank borrowings. The agreement provides for a 10% deposit of RM58.02 million, with the RM522.14 million balance payable within three months of the agreement becoming unconditional. The payment period carries an automatic one-month extension, with late-payment interest of 6% a year on the unpaid balance. Further extensions may be agreed in writing.

Scientex said neither it nor the purchaser had carried out a valuation of the land. The price was negotiated on a willing-buyer, willing-seller basis, taking into account comparable properties nearby, the land's characteristics and development prospects, and overall development costs. The group does not expect the acquisition to materially affect earnings or net assets for the current financial year. It expects the proposed development to enhance future earnings once it comes onstream.