AEON to buy 20.17-acre tract in Sungai Petani for RM36m

KUALA LUMPUR: AEON Co (M) Bhd has proposed to acquire a 20.17-acre parcel of freehold agriculture land in Sungai Petani, Kedah, for RM36.02 million or RM41 psf.

The group had entered into a sale and purchase agreement (SPA) with vendor Asia Plywood Company Sdn Bhd for the land, it announced to Bursa Malaysia on Friday, June 3.

According to AEON, the acquisition is part of its expansion plans — it plans to build and operate a shopping mall on the parcel of land.

AEON said the price of the parcel was arrived at on a willing buyer-willing seller basis, and the purchase consideration will be satisfied via a mix of cash and internally-generated funds.

The group will also obtain the building plan and other necessary approvals relating to the sale and purchase of the land and construction of the shopping mall.

Meanwhile, Asia Plywood Company will obtain the approval of the relevant authorities to convert the land use from agriculture purposes to commercial purposes.

The vendor will also obtain a planning approval/development order for a shopping complex on the plot of land, which will includethe ingress and egress to and from the property, widening of Jalan Desa Jaya to 100ft and upgrading of the traffic lights and road condition at Jalan Badlishah and Jalan Lencong Timur's junction.

The transaction is expected to be completed 30 days from the date of the SPA.