The Edge
Financial Daily, 8 March 2007
Scientex acquires 101ha land
in Johor for mixed development
Scientex Inc Bhd subsidiary Scientex Quatari Sdn Bhd is acquiring a 101.25ha
freehold plantation land in Sedenak, Johor Bharu for RM33 million for a mixed
development project.
The company in a statement on March 8 said the proposed acquisition would be
funded via internal funds and bank borrowings.
The land is currently planted with young oil palm trees but with local authority
approval for conversion into mixed development, and is located 9km from Kulai
town. It is also in the secondary promotion area of the Iskandar Development
Region (IDR).
“The acquisition which will beef up Scientex’s existing land bank in Johor by
approximately 25% is very much in line with the group’s strategy to expand our
land bank in the growth corridor of Johor. We plan to build 4,000 units of mixed
properties on this land,” Scientex group managing director Lim Peng Jim said.
The launch of the first 300 to 400 units of residential units is targeted within
12 months of the completion of the proposed acquisition expected in mid-2007.
The company expects the project to last 10 years.
“Taman Scientex's brandname and its track record for properties are already well
established in Johor due to the group’s existing 445.5 ha township development,
Taman Scientex in Pasir Gudang,” Lim said.
“By emulating the successful development concept we have in Taman Scientex, we
are confident the acquisition would enhance the future earnings base of the
Scientex group,” he said.
Property development accounted for 45% of Scientex’s pre-tax profit in the
financial year 2006 and has been one of the key drivers of the group’s
tremendous growth over the last five years when its revenue almost tripled to
RM586.3 million in FY2006 from RM200.1 million in FY2002.