KSL to buy 54 acres of land in Johor from Tropicana for RM103 mil

KSL to buy 54 acres of land in Johor from Tropicana for RM103 mil
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KUALA LUMPUR (Sept 12): KSL Holdings Bhd is buying 53.89 acres of freehold land in Pontian, Johor from Tropicana Corp Bhd for RM102.94 million.

In a bourse filing on Monday (Sept 12), the property developer said its wholly-owned subsidiary KSL Medini Development Sdn Bhd is acquiring the land from Tropicana GP Views Sdn Bhd, a unit of Tropicana, for the acquisition.

KSL said the plot enlarges the current land bank of the group to enhance future revenue and earnings, and will be used for a residential development project to further enhance its presence in the property market in Johor.

The group said the purchase consideration was arrived at on “as is, where is” and “willing seller-willing buyer” bases, after considering the market value of RM105 million for the land, as appraised by a registered valuer.

It added that the acquisition is expected to be completed by end-2023.

Touching on the residential development project, KSL said it will entail 628 units of residential properties and is expected to commence in 2024 and spread over a period of eight to 10 years.

“Based on the board’s estimation, barring any unforeseen circumstances, the total gross development value of the project will range from RM345 million to RM395 million; while its gross development cost is expected to be around RM188 million.

“Accordingly, an estimated gross development profit of between RM157 (million) to RM207 million is expected to be derived for the group over the duration of the said development,” it added.

The proposed acquisition for the land in Pontian comes a month after KSL’s unit, KSL Development Sdn Bhd, entered into an agreement with Tropicana's wholly-owned subsidiary Tropicana Desa Mentari Sdn Bhd to acquire 84.09 acres of land in Johor Bahru for RM109.88 million.

The Johor Bahru land is to be used for landed property development and is to enhance the group’s presence in the property market in Johor.

Shares in KSL ended down seven sen or 8.33% at 77 sen on Monday, giving the group a market capitalisation of RM798.88 million.

S. Kanagaraju