KUALA LUMPUR (July 1): Property developer Oriental Interest Bhd is buying a piece of land in Kuala Langat district from Sime Darby Plantation Bhd for RM40.11 million.

The 423,402-square metre land is currently planted with oil palm trees.

The purchase, via Oriental Interest’s 70%-owned subsidiary Myra Land Sdn Bhd, is part of the group’s “future expansion with regards to its strength and niche in the property development market in the central region of Peninsular Malaysia” Oriental Interest said.

The purchase is line with the group’s strategic planning to leverage on the group’s strengths in property development and construction, to develop the land complementary the group’s existing development in Klang Valley, the group added in a filing with Bursa Malaysia today.

Oriental Interest said the purchase, to be satisfied by internally-generated funds and bank borrowings, will not have material effect on the group’s net assets, gearing and earnings for the financial year ending June 30, 2020 (FY20).

Oriental Interest, however, said the purchase is expected to contribute positively to the group’s future earnings.

The acquisition is expected to be completed within five months, it added.

Oriental Interest’s shares were untraded today. The counter closed at RM2 on Thursday (June 27), valuing the group at RM309.72 million.