Khind to acquire land for commercial development in Setia City

KUALA LUMPUR: Khind Holdings Bhd has proposed to acquire a parcel of freehold land measuring 65,340 sq ft in Setia City, Precint 1, a commercial development in Shah Alam, from S P Setia Bhd's unit Bandar Setia Alam Sdn Bhd for a total of RM7.84 million or RM120 per sq ft.

Khind said the land would be developed for a commercial office building, for the company's own use as well as for letting out, allowing it to tap into recurrent rental income as a source of revenue.

"The company may also enjoy future potential capital appreciation in view that the property market will continue to grow in tandem with improving economic climate in Malaysia as well as regionally," it said in a statement on Tuesday, June 1.

The company expects to fund half of the land purchase via bank borrowings and the other half from internal funds. Its gearing level will increase to between 0.35 and 0.4 time from 0.05 times based on Khind's audited accounts as at Dec 31, 2009.