KUALA LUMPUR (March 24): Mitrajaya Holdings Bhd is acquiring a 0.86-ha (2.13-acre) plot of leasehold land in Sepang for RM4.22 million.

It said its 60%-owned unit Mitrajaya Equipment Resource Sdn Bhd is buying the land, located along Jalan Nilai-KLIA (towards Bandar Baru Salak Tinggi), from Visible Profit Sdn Bhd.

In a filing to Bursa Malaysia yesterday, Mitrajaya said the acquisition, to be paid for using internally generated funds, will enlarge its property division's landbank for future developments.

The flat vacant land has a net book value of about RM1.15 million, based on Visible Profit's latest audited financial statements for Dec 31, 2015. The lease expires on May 25, 2104.

Mitrajaya said the purchase price was arrived at on a "willing-buyer willing-seller" basis after considering the independent valuation by property investment consultant Rahim & Co in July 2016 of RM4.175 million, as well as the development potential of the land.

Mitrajaya's share price closed 1.5% higher at RM1.32 yesterday, valuing the group at RM883.61 million. — theedgemarkets.com

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