KUALA LUMPUR (Dec 8): Astral Asia Bhd is buying a 226.7ha site in Kuantan for RM1.77 million to expand its adjacent Kuantan Hi-Tec Park project.
In a filing with Bursa Malaysia on Wednesday, Astral Asia said its 65% owned subsidiary Syarikat Ladang KLPP Sdn Bhd (SLKLPP) had entered into a sales and purchase agreement with Lembaga Kemajuan Perusahaan Pertanian Negeri Pahang (LKPP).
It is a related-party transaction as LKPP is a major shareholder of Astral Asia with a 26.91% stake.
Astral Asia said the land is adjacent to the proposed Kuantan Hi-Tech Park development, and would increase its total landsize to 984.6ha from 758ha.
"The additional 560 acres (226.7ha) designated area shall be earmarked for the development of heavy industries component in the overall industrial park of Kuantan Hi-Tech Park," it said.
Astral Asia said the total development costs and the expected profits are yet to be derived as the detailed development plan is pending finalisation.
On Feb 9, SLKLPP had entered into a joint-venture agreement with Tasja Development Sdn Bhd to develop the Kuantan Hi-Tech Park over 15 years.
The 226.7ha site is currently being used for oil palm cultivation.
Astral Asia gained one sen to close at RM1.29 on Wednesday with 47,000 shares done.