KUALA LUMPUR (May 29): Loss-making oil palm planter and property developer Harn Len Corp Bhd announced today that it has bought a private company for RM24 million to gain access to a plot of land the latter owns in Johor Bahru.

The target company is Midwest Equity Sdn Bhd and jointly owned by Datuk Azizi Yom Ahmad (35%), Datuk Abdul Gani Yusof (35%), and Piagam Wira Sdn Bhd (30%). However, Harn Len did not detail how big the land is.

“The basis of the Purchase Consideration was that the Land is located at a strategic and prime location and thus, there is expected capital appreciation and gain from future development,” Harn Len said in a filing with Bursa Malaysia today.

“The land is located in the heart of Johor Bahru City Centre and approximately opposite the state's most strategic development, comprising of six towers — a hotel, a hotel with residences, an office, high rise medical suites, two serviced apartment towers and a mall,” Harn Len added.

According to Harn Len, its purchase of Midwest Equity — done on the basis of willing-buyer, willing-seller — was funded via a combination of cash and borrowings. As at end-2016, Harn Len has cash and bank balances of RM3.12 million.

Harn Len owns 16,901ha of oil palm plantations, mainly in Pahang and East Malaysia. It also operates a three-star hotel, Tropical Inn, which is part of the 25-storey office tower known as Johor Tower.

Listed on the main market since 2003, Harn Lern shares slid 1 sen or 1.22% to 81 sen today, for a market capitalisation of RM150.24 million.