IJM to develop land near Kuantan Port

KUALA LUMPUR: IJM Land Bhd (IJML) has plans to develop 273.2ha  of land near the Kuantan port for a proposed mixed development project.

Yesterday it acquired a 60% equity interest in Asas Panorama Sdn Bhd (APSB), which had entered into 67 conditional sale and purchase agreements to acquire 67 parcels of leasehold land in Kuantan, Pahang for a total consideration of RM296 million.

The tracts have a gross development value of RM1.4 billion, consisting of a lot of residential land, six lots of commercial land, and 60 lots of industrial land.

Development is expected to commence in 2014, with completion in 2024.

According to IJML, the acquisition will not have any effect on the issued and paid-up share capital of the company, and will also not have any significant effect on the earnings and its net assets per share for its financial year ending March 31, 2014.

“However, it is expected to increase the pro-forma gross gearing of the group from 0.2 times to 0.3 times (based on pro-forma gearing as at March 31, 2013); and is expected to contribute positively to the future earnings of the group,” IJML said.

IJML highlighted that the acquisition provides an excellent opportunity for the group to diversify its property development business into a primarily industrial development, from its existing portfolio of mainly residential and commercial projects.

“It also represents a geographical diversification for the group by extending the group’s presence in Malaysia by venturing into the state of Pahang,” it added.

IJM Corp Bhd had entered into a strategic partnership with Guangxi Beibu Gulf International Port Group Co Ltd for the expansion of Kuantan Port, via the disposal of a 40% equity  in Kuantan Port Consortium Sdn Bhd.— by Wei Lynn Tang

This article first appeared in The Edge Financial Daily, on December 6, 2013.


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