Scientex buys land in JB for RM219 million cash

SHAH ALAM (June 29): Packaging manufacturer Scientex Bhd, which is also involved in property development, intends to buy 326 acres of freehold tract in Pulai, Johor Bahru, for RM219 million cash to expand its land bank.

In a statement today, Scientex said that the lands are 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 subsidiary, Scientex Quatari Sdn Bhd, today entered into conditional sale and purchase agreements with two different vendors, to acquire 252 acres from Bukit Gambir Company Sdn Bhd and 74 acres from Jayaplus Bakti Sdn Bhd.

The proposed acquisitions will be funded by internally generated funds and bank borrowings, according to the statement.

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.

Scientex managing director Lim Peng Jin said the company remains optimistic on sustained demand for residential properties in Johor despite the generally dampened market sentiment.

"The proposed acquisitions would increase our remaining ongoing and undeveloped land bank to approximately 1,200 acres from 870 acres currently, as we strive to capture anticipated long-term growth in demand from a steadily growing population," he said.

Located under the jurisdiction of Majlis Perbandaran Johor Baru Tengah, the new lands are about 33km from Johor Baru City Centre, and 25km from the customs checkpoint of the Malaysia-Singapore Second Link.

Meanwhile, a newly-proposed Pulai Jaya Interchange Exit to the Malaysia-Singapore Second Link would also be situated about 5km away.