Kimlun Corp Bhd is buying a plot of freehold agriculture plot measuring 11.734ha in Pulai, Johor, from UEM Sunrise Bhd for RM82.1 million to develop commercial properties.
The purchase is being undertaken via its indirect wholly-owned unit Kii Morris Sdn Bhd, which inked the sale and purchase agreement with UEM’s unit Nusajaya Greens Sdn Bhd yesterday, according to the group’s filing with Bursa Malaysia.
The purchase consideration will be financed using internal funds and/or external borrowings. Assuming that RM50 million or some 60% of the purchase consideration is financed via external borrowings, Kimlun said its gearing, which stood at 0.06 times as at 31st Dec 2016, is expected to increase by 0.09 times reported The Edge Markets.
The group plans to apply to the Johor state authority to convert the land from agriculture use to commercial.