KUALA LUMPUR (Sept 7): Fiamma Holdings Bhd said it has paid RM109.65 million for an alienation land approval to develop a 1.88-acre land along Jalan Yap Kwan Seng.

The approval was granted by the Federal Territories director of Lands and Mines Office, the household goods trading outfit said in a filing.

The leasehold land, which is located near to Fiamma’s existing 1.4 acre land along the same road, will be used for mixed development split between residential (20%) and commercial (80%), it added.

“The land is strategically located in Kuala Lumpur’s dynamic, high-rise city centre with upscale office buildings, fashion malls, luxury hotels and various amenities, and with expansive views from the futuristic Petronas Twin Towers,” it said.

The payment is funded by a combination of internally generated funds and external borrowings, Fiamma said. It made the payment on Thursday.

Fiamma’s property segment contributed to 26% of the group’s revenue of RM347.02 million in the six months ended June 30, 2023 (1HFY2023), but to only 4% of the group’s net profit of RM94.54 million in the period.

The group’s existing 1.4-acre land there is proposed for the development of residential properties. It also has a 2.6-acre land along Jalan Sungai Besi.

Shares of Fiamma settled 1.5 sen or 1.56% lower at 94.5 sen on Thursday, giving the group a market capitalisation of RM498.5 million.