MB World acquires land in Johor for RM8.15m

PETALING JAYA: MB World Group Bhd is acquiring 15.56 acres of land comprising 252 parcels of residential terrace plots in Taman Sri Pulai Perdana, Johor Baru for RM8.15 million cash.

In a filing with Bursa Malaysia today, the group said its wholly-owned subsidiary MB Max Sdn Bhd had entered into the sale and purchase agreement (SPA) with Shiya Sdn Bhd for the acquisition.

The parcels have been earmarked for a mixed development under the state’s affordable homes policy and Shiya has the legal obligation to build and complete the construction in accordance with the state’s requirements.

The land was approved for 252 units of double-storey courtyard type of terrace units on Sept 30, 2013. The net book value of the land based on Shiya’s latest audited financial statements is RM4.3 million.

The purchase consideration, calculated at the rate of RM12.02 per sq ft, takes into consideration the development potential of the land and indicative market value of RM8.75 million as assessed by Henry Butcher Malaysia (Pontian) Sdn Bhd.

The group said the acquisition will allow MB Max to continue and maintain its property development activities with land that is strategically located and has easy accessibility and connectivity via major highways.

The estimated gross development cost and profit of the development are RM34.56 million and RM5.39 million respectively. Development is expected to commence immediately after completion of the SPA and completed within 24 months.

MB Max intends to acquire the land en bloc and will fund the acquisition by internally generated funds and/or bank borrowings.

The acquisition, which is conditional upon Shiya obtaining the blanket approval from the Land Registry of Johor Baru for the sale and block transfer of the land in favour of MB Max, is expected to be completed within six months from the SPA date.

MB World’s share price rose 2 sen or 1.06% to close at RM1.91 today with a total of 96,800 shares traded.