KUALA LUMPUR: AME Elite Consortium Bhd's subsidiary Golden Symphony Sdn Bhd has entered into a sales and purchase agreement with Dahlia Utama Sdn Bhd to acquire three parcels of freehold land in Kulai, Johor.
In a filing to Bursa Malaysia, AME Elite said the proposed acquisition, which has a combined land area of 15.18 hectares, is for a total of RM106.17 million.
It will be 90 percent funded by external borrowings, while the remaining 10 percent will be paid with internal funds, the company added.
According to AME Elite, the land is located within Taman Teknologi Johor in Senai and fronting Skudai-Senai Highway.
"Based on the preliminary plan and subject to the approval of the relevant authorities on the development, the group intends to develop the lands into an industrial cluster."
AME Elite said the proposed acquisition would be a strategic investment opportunity to increase the group's existing land bank at a strategic location.
"After taking into consideration the favourable outlook on the potential development of the lands, AME believes that the proposed acquisition will augur well for the group.
"The future development of the lands is expected to contribute positively to the group's future earnings in the medium term and deliver growth to the group if the development components on the lands are planned properly," it noted.
AME Elite said it is in preliminary discussions with certain land owners in and out of Johor to explore potential and development opportunities on sizeable land.
However, the company has not identified or committed to any acquisition and development targets.