KUALA LUMPUR (Nov 14): Amalgamated Industrial Steel Bhd (AISB) is acquiring five parcels of land near the under-construction Damansara Damai MRT station in Sungai Buloh for RM31 million.

The leasehold commercial land parcels, measuring 14,365 sq metres in total, house a single-storey sports centre and a one-and-a-half-storey reconditioned car showroom, AISB said in a filing with Bursa Malaysia.

The group said the property is located within an area with mixed commercial and residential development and it is 15km from Kuala Lumpur.

It is strategically located within four km from the Sungai Buloh MRT station and is easily accessible to the North-South Expressway, Damansara-Puchong Expressway (LDP) and Duta-Ulu Kelang Expressway, said AISB.

The group said its wholly-owned subsidiary, Parkwood Damai Sdn Bhd, signed the sale and purchase agreement with Rias Niaga Sdn Bhd today.

The proposed acquisition, it said, will be funded via a combination of internally-generated funds and bank borrowings.

Loss-making AISB is involved in the sale of steel-related products and property development.

It said the proposed acquisition is in line with the group’s long-term strategy to grow its property development business by tapping into strategic locations with development potential where the infrastructure, amenities and connectivity are established.

Upon completion of the acquisition, the group said it intends to plan and carry out a redevelopment to realise the land’s earning potential.

AISB’s share price closed half a sen or 2.13% higher at 24 sen today, bringing the group a market capitalisation of RM33.02 million.