KSL buys 47.74ha land in Tebrau for RM133.59m

KUALA LUMPUR (March 12): KSL Holdings Bhd is buying two parcels of leasehold land totalling 47.74ha in Tebrau, Johor Bahru for RM133.59 million cash.

The Johor-based property developer said the proposed acquisition enlarges the group's current land bank to enhance future revenue and earnings. It plans to use the land for landed properties development and further enhance its presence in the property market in Johor.

The two plots have a lease of 99 years, with both expiring on Jan 3, 2115.

In a filing with Bursa Malaysia today, KSL said its wholly-owned subsidiary Goodpark Development Sdn Bhd has signed a conditional sale and purchase agreement with Grace Versatile Sdn Bhd for the proposed acquisition. The shareholders of Grace Versatile are Datuk Kho Eng Hue @ Koh Eng Hooi, Strangeway Sdn Bhd, Datuk Ding Pei Chai and Datuk Anad Krishnan Nuthusamy.

One of the parcels of land measures 5.09ha, while the other totals 42.64ha. They are located at the intersection of Jalan Kota Tinggi and Senai-Desaru Expressway (at Ulu Tiram Toll) and are about 18km to the north-east of the Johor Bahru city centre.

KSL said it will fund the purchase via a combination of internal funds and/or bank borrowings, the quantum of which is to be determined later.

It also noted that the proposed acquisition will correspondingly increase the borrowing and gearing level of KSL Group. "Nevertheless, the board will endeavour to manage its cash flow position and funding requirements prudently, to address the above risks," it added.

The land purchase does not require shareholder approval. — theedgemarkets.com

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