Sunsuria Bhd is paying RM74.17 million for a parcel of leasehold agricultural land in Ijok, Kuala Selangor, to expand its property development and property investment businesses.

According to a filing with the Bursa Malaysia last Friday, the proposed acquisition represents an opportunity for the company to accumulate strategic industrial land.

The developer has proposed purchasing 24.61 hectares of land from Superjet Revenue Sdn Bhd.

Sunsuria Residence Sdn Bhd, its wholly-owned subsidiary, has signed a conditional sale and purchase agreement with Superjet Revenue, the owner of the 99-year leasehold land, which will expire on January 13 2101.

Sunsuria told Bursa Malaysia last Friday that the land is currently zoned for agricultural use but designated for industrial use.

“The said land is situated in a strategic location where the necessary infrastructures are readily available, with positive industrial development potential within the area,” it said.

According to the filing, the proposed purchase would be funded by bank borrowings and internally generated funds.

“Assuming that 75 per cent of the purchase consideration is financed through bank borrowings, it will increase the company’s gearing ratio from 0.49 times to 0.54 times,” the company said.

Sunsuria said that the proposed land acquisition is expected to be completed within 12 months, barring any unforeseen circumstances.

Source: New Straits Times,  April 25, 2022