KUALA LUMPUR: Packaging manufacturer and property developer Scientex Bhd intends to buy 326 acres (132ha) of freehold tract in Pulai, Johor Baru for RM219 million to expand its land bank.

In a statement yesterday, Scientex said the land is situated near Scientex’s integrated township development in Skudai, Johor, known as Taman Mutiara Mas, and various other matured residential areas.

The group’s wholly-owned unit Scientex Quatari Sdn Bhd entered into two conditional sale and purchase agreements; one to acquire 252 acres from Bukit Gambir Co Sdn Bhd and the second for the remainder 74 acres from Jayaplus Bakti Sdn Bhd. The proposed acquisitions will be funded by internally generated funds and bank borrowings.

Pending approvals from shareholders at an upcoming extraordinary general meeting and the relevant authorities, the acquisitions are expected to be completed in the fourth quarter of 2015 (4Q15).

Scientex managing director Lim Peng Jin said the company remains optimistic about sustained demand for residential properties in Johor despite the generally dampened market sentiment currently, and that the proposed acquisitions will up its ongoing and undeveloped land bank to 1,200 acres from 870 acres.

Meanwhile, Scientex’s net profit rose 18.2% to RM42.96 million in 3Q ended April 30, 2015 (3QFY15), compared with RM36.34 million a year ago, while revenue grew 6.7% to RM455.25 million from RM426.77 million — due to improved contributions from its manufacturing segment and higher sales of affordable residences in Johor.

It also declared a single-tier interim dividend of nine sen or 18%, payable on Aug 7. The ex-date is July 15.

For the nine months ended April 30, Scientex’s net profit rose 9.7% to RM109.28 million from RM99.6 million a year ago, while revenue grew 14.4% to RM1.35 billion from RM1.18 billion previously.

“We are confident of our prospects in FY15, given the rapid fruition and progress of our expansion in the manufacturing segment,” said Lim.

Lim said the group’s unbilled property sales are RM600 million, which should last it until 2017.

This article first appeared in The Edge Financial Daily, on June 30, 2015.