KUALA LUMPUR (Aug 15): Oriental Interest Bhd is buying a parcel of agricultural land in Bandar Kulim, Kedah, from MBAS Jaya Sdn Bhd for RM36.45 million or RM5.50 per sq ft, to increase its land bank.

In a filing with Bursa Malaysia, Oriental Interest said its wholly-owned unit OIB Properties (K) Sdn Bhd today signed a sales and purchase agreement (SPA) with MBAS Jaya Sdn Bhd for the proposed acquisition of the 61.57ha-land.

The group said the acquisition is in line with its strategy to focus on development in the northern region of Peninsular Malaysia and to continuously replenish and expand its existing land bank in strategic locations.

The acquisition is to be funded via a combination of bank borrowings and internal funds.

“The proposed acquisition is not expected to have any material effect on the earnings and earnings per share of the group for the financial year ending June 30, 2019.

“However, the development of the land is expected to contribute positively to the future earnings of the group,” said Oriental Interest.

The group expects the proposed acquisition to be completed within 14 months from the date of the agreement.

At closing, Oriental Interest shares rose four sen or 1.99% to RM2.05 today, giving it a market capitalisation of RM317.46 million.