Maxim’s 51%-owned unit to buy land near Bukit Chagar from S P Setia for RM167m cash

• Bukit Chagar — the location of the Johor-Singapore Rapid Transit System (RTS) station that is currently under construction — is in the immediate vicinity of the land purchased by MPSB, according to a bourse filing.

KUALA LUMPUR (March 22): Maxim Global Bhd announced that its 51%-owned unit Maxim Pelangi Sdn Bhd (MPSB) is acquiring a parcel of land in Taman Maju Jaya, Johor Bahru, for RM167 million cash.

Bukit Chagar — the location of the Johor-Singapore Rapid Transit System (RTS) station that is currently under construction — is in the immediate vicinity of the land purchased by MPSB, according to a bourse filing.

The vendor of the 26,329 sq m freehold land in Taman Maju Jaya is Pelangi Sdn Bhd, a wholly owned subsidiary of I&P Group Sdn Bhd, which in turn is fully owned by S P Setia Bhd, the filing said.

MPSB has inked a conditional sale and purchase agreement with Pelangi for the land purchase, which will be financed by a combination of bank borrowings and internally generated funds, Maxim said in the filing.

Alliance Gloss Sdn Bhd is the other shareholder of MPSB holding the remaining 49% stake.

The property developer said the land acquisition, which is expected to be completed by the second half of this year, is set to provide the group with a potential income from the development of the tract.

“The board opines that the proposed acquisition will enable the group to supplement its existing land bank at strategic locations outside of Kuala Lumpur and Selangor, which may allow the group to further strengthen its foothold in the property development business and benefit from potential capital appreciation,” Maxim said.

“The proposed acquisition is expected to contribute positively to the future performance of the group in the long term,” it added.

Maxim’s cash and bank balances amounted to RM50.37 million plus short-term investments at RM187.25 million, while its bank borrowings stood at about RM142.88 million as at end-2023, according to its latest financial statement.

As at March 13, the group's land bank consisted of 30 acres across Kuala Lumpur and Selangor, the filing stated.

Shares in Maxim fell 1.5 sen or 3.85% to close at 37.5 sen on Friday, valuing the group at RM275.73 million.

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