KUALA LUMPUR (Jan 30): KSL Holdings Bhd (KSL) has started its land banking exercise for the year, by purchasing 297.2 acres of freehold agricultural land in Batu Pahat, Johor, for RM90.62 million.
“The objective of the proposed acquisitions is primarily to replenish the land bank of KSL, and it is in line with the expansion plan to acquire and enlarge its land bank at strategic locations for the future property development activities.”
“The proposed acquisition will provide the group with the required land bank, and are expected to achieve medium to long term sustainable income growth and visibility,” KSL said in a filing with Bursa Malaysia.
The parcels of land are purchased by four of KSL’s wholly-owned subsidiaries from Indah Corp Bhd — an investment holding company which operates the Bukit Banang Golf and Country Club.
The RM90.62 million price tag was arrived on a willing buyer willing seller basis, it said, after taking into consideration, the development potential of the land and making comparisons with the market value of matured properties surrounding the land.
KSL (fundamental: 2.6; valuation: 0.6) said no formal valuation was done for the purchase, as the Board viewed market comparisons were sufficient.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)