Harn Len buys real estate firm for RM28 million

PETALING JAYA: Oil palm company Harn Len Corp Bhd has acquired the entire stake in property and real estate development firm Midwest Equity Sdn Bhd (MESB) for RM28 million.
The company owns land of an undisclosed size located in Johor Baru City Centre. The land is currently charged to Malaysia Building Society Bhd for a loan.
Harn Len’s board of directors told Bursa Malaysia an agreement was struck with Datuk Azizi Yom Ahmad, Datuk Abd Gani Yusof and Piagam Wira Sdn Bhd.
Both Azizi and Abd Gani hold 35% stake in MESB while Piagam Wira holds 30%. With the execution of the agreement, MESB will become a subsidiary of Harn Len.
“Harn Len intends to invest in the land for its appreciation in value. The land is located approximately opposite the state’s most strategic development comprising of six towers – a hotel, a hotel with residences, an office, high rise medical suites, two serviced apartment towers and a mall,” its board said as the basis for the purchase.
Harn Len said the purchase was funded through cash and MBSB Loan. It said earnings for the financial year ending Dec 31, 2017 will not be impacted by this acquisition.