Scientex expands landbank with RM123.6 mil acquisition in Johor

PETALING JAYA (Dec 28): Packaging manufacturer and property developer Scientex Bhd has expanded its landbank with the acquisition of two parcels of land amounting to 121 acres in Kulai, Johor for a total cash consideration of RM123.6 million.

According to a statement today, the lands are situated in Senai town along the North-South Expressway and Senai Highway, and are approximately 15 and 20 minutes from Scientex’s existing townships — the 250-acre Taman Scientex Senai and 326-acre Taman Pulai Mutiara.

Notable landmarks in the vicinity include the Senai International Airport, Johor Premium Outlets, and Seri Omega Private & International School.

With these purchases, Scientex’s total landbank increases to approximately 2,400 acres, said managing director Lim Peng Jin. The total landbank is sufficient to sustain the company’s property development segment for the next 10 to 15 years.

“This acquisition is a new opportunity of growth for us, allowing Scientex to extend our expertise in providing affordable properties to cater to a larger population in Johor,” he said.

The acquisition will be financed by a combination of internally-generated funds and bank borrowings, the ratio of which has yet to be determined.

Lim added that the company will continue delivering products that are attuned to buyers’ affordability and preferences to cement the performance of its property development segment going forward.

“Scientex remains committed to upholding our twin engines of growth in manufacturing and property,” he noted. “We will always be on the lookout to enhance the prospects of both segments well into the future.”

Scientex has ongoing projects worth RM1.6 billion, consisting mainly of five townships in Johor, including Pasir Gudang, Kulai, Skudai, Senai, Pulai, and a mixed-use development in Melaka.

For the financial year ended 31 July 2016 (FY2016), its property development segment contributed RM652 million in revenue, making up 30% of group revenue.

The balance was derived from the manufacturing segment, comprising consumer and industrial packaging for the local and international markets.