Mah Sing acquires land in JB
Mah Sing Group Bhd acquired 31 pieces of adjoining freehold land with net land area measuring 1,351.84 acres in Johor Baru for RM429.86 million or RM7.30 per sq ft.
Mah Sing said its wholly-owned subsidiary, Sanjung Tropika Development Sdn Bhd, has signed a conditional sales and purchase agreement with Bistari Land Sdn Bhd for the proposed acquisition.
The propperty developer said it intends to fund the proposed acquisition through a combination of internally generated funds, rights issue with warrants and/or bank borrowings.
It had raised RM397.74 million through a rights issue with warrants, which was completed on March 22, 2013.
"In this respect, an amount of not less than 20 per cent of the purchase price, equivalent to RM86.0 million, is expected to be funded by the rights issue proceeds and internally generated funds," said Mah Sing in a filing to Bursa Malaysia today.
The remaining balance of up to 80 per cent of the purchase price, equivalent to RM343.9 million, is expected to be funded by external bank borrowings.
Meanwhile, Mah Sing said the development cost of the lands would be funded through internally generated funds and bank borrowings, which will be decided at a later stage.
"The group believes the latest acquisition of land will see it benefit from the vibrant growth in Iskandar Malaysia and the strong demand for strategically located quality properties," it said.
Mah Sing's shares resumed trading from 3.58pm today after being halted for an hour.-- Bernama