DXN Land buys vacant land from managing director

PETALING JAYA: DXN Land Sdn Bhd, a subsidiary of DXN Holding Bhd, has agreed to purchase three pieces of vacant freehold land from Lim Boon Yee, managing director of the holding company, for a total cash consideration RM706,090, according to Bursa Malaysia announcement on Nov 24.

The three plots add up to 1.09ha (2.6 acres) and are located in Mukim Arau, Perlis.

DXN Land plans to develop the three plots along with an adjacent 2.494ha (6.1 acres) of land purchased on Feb 10, 2009, for approximately RM1.610 million.

The company will soon submit a proposal to the relevant authorities to develop 19 shophouses and 71 residential houses. The estimated development cost of the project is about RM11.2 million, with an estimated profit of RM4.1 million upon realising of sales. The cost of the development will be financed internally.

The purchase of these freehold plots is not expected to have any material impact on the holding company’s earnings for the financial year ending Feb 28, 2010, nor will it have any significant effect on its consolidated net assets.

The acquisition will also not have any effect on the gearing of the holding company and shareholdings of substantial shareholders.