KUALA LUMPUR (Jan 5): Kimlun Corp Bhd’s unit plans to buy an 11.12-acre freehold commercial land in Bandar Seri Alam, Johor Baru for RM40.5 million.

The group said its indirect subsidiary Kii Melodia Sdn Bhd had agreed to acquire the land from Seri Alam Properties Sdn Bhd, the developer of the Seri Alam township and a subsidiary of United Malayan Land Bhd.  

The purchase consideration translates into about RM83.61 per square foot (psf), Kimlun said in a filing with Bursa Malaysia.

“The proposed acquisition provides an opportunity for the group to increase the size of its land bank in strategic locations in order to enhance its future revenue and earnings,” said Kimlun, adding that Kii Melodia plans to build commercial properties on the land.

“As the development potential has yet to be finalised at this preliminary stage, the total development revenue/cost, expected commencement and completion date or expected profits to be derived cannot be readily ascertained,” the group said.

The acquisition is expected to be completed by the end of the third quarter of 2021, said Kimlun.

As at 3.35pm, shares in Kimlun were one sen or 1.17% lower at 84.5 sen, bringing it a market capitalisation of RM298.61 million. The counter had seen some 230,900 shares traded.