DIVERSIFIED group Scientex Inc Bhd will spend RM33 million, or RM3 per sq ft, to buy 100ha of freehold land near Kulai town in Johor to build affordable houses.

The land is located in Sedenak, 9km from Kulai, and is within the secondary promotion area of the Iskandar Development Region.

"The purchase will beef up Scientex's land bank in Johor by 25 per cent and is in line with our strategy to expand in the growth corridor of Johor," managing director Lim Peng Jin said in a press release yesterday.

The company plans to build 4,000 units of mixed properties on the land and the first 300-400 units of residential asset are targeted for launch within a year after the purchase is completed.
Scientex agreed to buy the land yesterday and the purchase is expected to be completed by the middle of this year.

The company expects the project to last about 10 years.

Scientex has built its name in the southern state with the 440ha "Taman Scientex" project in Pasir Gudang, which has found a niche by promising fast delivery and cheaper prices.

Its houses in Johor have an average take-up rate of over 90 per cent, 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 company," he added.
The land will be funded by internally generated funds and bank borrowings.

The proposal still needs the approval of the Foreign Investment Committee and state authorities.

Apart from property development, Scientex is also involved in making industrial packaging products, automotive parts, and chemical-related products.

Property development, which accounted for some 45 per cent of its pre-tax profit last year, has been one of the key drivers of the company in the last five years.

During the period, Scientex's revenue almost tripled from RM200 million in 2002 to RM586 million last year.

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