PETALING JAYA: Tadmax Resources Bhd’s wholly owned subsidiary Mizumi Development Sdn Bhd has accepted a RM29.5 million banking facility from United Overseas Bank (Malaysia) Bhd to partly finance the purchase of 3.24-acre leasehold land in Kuala Lumpur.
The group is required to provide a corporate guarantee for the facility, according to its filing with Bursa Malaysia.
The facility, however, will result in the group incurring interest expense, which will form part of the cost of development of the project land.
Tadmax said in the near future, the project land is expected to contribute positively to the group’s future earnings.
“The group envisages to launch the development of the project land in the near future.”
The land was acquired by Tadmax early this month for RM36.65 million, in line with the group’s strategy to further strengthen its presence in property development and construction.
