KUALA LUMPUR (Dec 17): Packaging materials maker and property developer Scientex Bhd is buying 18 parcels of leasehold agriculture land in Kota Tinggi, Johor from Fiamma Holdings Bhd to be developed into a mixed property development.

Measuring a total of 85.73 acres, Scientex will pay RM39.21 million for the land, which is situated less than 5km from Kota Tinggi town and 25km to Johor Baru city. It is accessible via Johor Baru-Kota Tinggi highway and Kota Tinggi-Kulai road.

"However, it is currently too preliminary to ascertain the exact total gross development value, development cost, the expected commencement and completion dates of the development and the expected profits to be derived from the development of the land," said Scientex in a bourse filing today.

It added that its indirect wholly-owned subsidiary Amber Land Bhd has today entered into an agreement of sale with Oaksvilla Sdn Bhd, a wholly-owned unit of Fiamma, for the proposed acquisition.

Scientex said the land's development prospects would allow the group the opportunity to create greater economic value and increase its earnings potential, as well as to obtain better foothold in property market.

"The landbank expansion is also in line with the vision of Scientex Group to build more affordable homes with an objective of building 50,000 affordably-priced quality homes throughout the nation by 2028. The land is expected to provide a steady and sustainable property development model as Scientex Group continues to focus on landed affordably priced properties which demand has remained firm and resilient," it added.

It will fund the proposed acquisition by internal funds and bank borrowings.

The proposed acquisition is expected to be completed in the first half of 2020.

Scientex shares ended up 3 sen or 0.31% at RM9.83 in morning trade, with 87,500 shares done, bringing a market capitalisation of RM5.07 billion.