• On the RM7.4 million purchase consideration, S&F Capital said it was set on an "as-is-where-is" basis, but added that no valuation has been carried out on the land thus far.

KUALA LUMPUR (Nov 8): The 9.44-acre land near Kulim Hi-Tech Park (KHTP) in Kedah that S&F Capital Bhd has proposed to acquire for RM7.4 million is to be utilised for industrial or residential development.

In response to queries from Bursa Malaysia on the proposed purchase, property developer S&F Capital said the land is three kilometres away from Phase 4 of the KHTP and will therefore be converted into industrial or residential status from its current agricultural status.

"The lands are currently restricted to plantation activity, but [the group's 55%-owned unit Pluto Securities Bhd (PSB)] has started the procedure to apply to Kulim Council on the intention to re-zone the land into either industrial or residential status," the group said in a filing on Tuesday (Nov 8).

On the RM7.4 million purchase consideration, S&F Capital said it was set on an "as-is-where-is" basis, but added that no valuation has been carried out on the land thus far.

"[PSB] will engage a property valuer to carry out the valuation of the land should [PSB] decide to fund the purchase via bank borrowings and if it is required by the financial institutions," the group said.

Last week, S&F Capital announced that PSB had entered into an agreement with vendors — Balkhis Othman and Siti Hawa Othman — to acquire five parcels of land measuring an aggregate 9.44 acres for RM7.4 million.

"The land has an upside potential in terms of capital appreciation as it is strategically located [in the] Kulim area and only three kilometres away from KHTP, a mega international industrial scheme that is expanding rapidly."

The purchase consideration is to be satisfied by cash and external borrowings.

"Barring any unforeseen circumstances, the proposed acquisition is expected to be completed by the second quarter of 2023," S&F Capital added.

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