KUALA LUMPUR (May 13): Kimlun Corp Bhd is acquiring land in Kota Tinggi, Johor for RM28.3 million and proposed to build residential properties thereon.

In a statement to Bursa Malaysia, Kimlun (fundamental: 1.3; valuation: 1.8) said its indirect wholly-owned unit Kitaran Lintas Sdn Bhd (KLSB) today entered into an agreement of sale to acquire 29 parcels of contiguous freehold land from vendor Choo Chek Juan @ Choo Ou Kiak.

KLSB is a wholly owned subsidiary of Kimlun Land Sdn Bhd (KLSB), which in turn is a wholly owned subsidiary of Kimlun.

Kimlun said the acquisition will be paid via internal generated funds and external borrowings and the transaction is expected to be completed in the first quarter next year.

Currently, 60% of the collective land measuring approximately 140.8 acres are planted with aged oil palms, while the remainder 40% are mostly planted with immature oil palms, it said.

The lands are all free from encumbrances, save for four parcels of land are "charged" to Malayan Banking Bhd (Maybank), and another four parcels that are endorsed with "Hak Laluan Talian Elektrik", it added.

The company said the vendor will undertake to redeem the "charged properties" from Maybank, as stipulated under the conditions precedent to the agreement.

According to Kimlun, KLSB intends to submit an application to the Johor State Authority to covert the land use for residential purposes instead of agriculture.

Once the conversion application is approved, KLSB will submit its development application to build residential properties.

Kimlun said the development potential has yet to be detailed or finalised as it is at the preliminary stage.

Kimlun ended flat at RM1.31, giving it a market capitalisation of RM393.74 million.
 
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