KYM Holdings plans residential development in Ipoh

KUALA LUMPUR: KYM Holdings Bhd is planning a residential development of bungalows, terraced homes, condominium and apartment on its newly acquired 41.36-acre leasehold land in Ipoh.

In a filing to Bursa Malaysia on March 31, the company said the development will have a gross development value of RM120 million and gross development cost of RM90 million. The development is slated for construction by early next year.

KYM Holdings had on March 30 entered into a sale and purchase agreement to purchase the land from Idaman Bina Makmur Sdn Bhd for an aggregate purchase consideration of RM12 million, which will be satisfied by a cash consideration of RM100,000 and the balance of RM11,900,000 via the issuance of 8.75 million new KYM shares at an issue price of RM1.36.

Idaman Bina Makmur is a 60%-owned company by Datin Millie Lee Siew Kim, the wife of KYM Holdings’ major shareholder Datuk Lim Kheng Yew. It is principally engaged in property development, and has an authorised share capital of RM1 million, divided into one million shares of RM1 each of which 500,000 shares are issued and fully paid-up.

“Approvals for this development have been obtained from Jabatan Kerja Raya Kinta, the Sewerage Department and Indah Water Perak. The estimated gross development cost of RM90 million [excluding the acquisition cost of RM12 million] is expected to be financed via internally generated funds and bank borrowings,” KYM Holdings added.

The new share issue will result in Lim holding more than 38% direct and indirect interest in KYM Holdings, and trigger a mandatory general offer. He is to seek waiver from the corporate exercise.