The group aims to begin land development in 2022
by BERNAMA / pic by MUHD AMIN NAHARUL
DRB-HICOM Bhd’s indirect wholly owned subsidiary, Hicom Glen Sdn Bhd, has proposed to buy 116.44ha in Alor Gajah, Melaka, from Tradewinds Plantation Bhd for RM240 million for industrial park development.
Hicom Glen signed a conditional agreement with Tradewinds’ unit Eksklusif Pesona Sdn Bhd last Friday, to acquire the 10 contiguous parcels of agricultural land, currently planted with oil palm trees that have been approved for industrial use.
DRB-Hicom said subject to the prevailing future property market conditions, the group aims to begin land development in 2022.
“The proposed acquisition will enable the group to replenish its industrial landbank and enable the group to pursue the development of new industrial parks in Melaka in addition to Hicom Pegoh Industrial Park,” it said in a filing to Bursa Malaysia last Friday.
The investment holding company said it believed the medium to long-term prospects of the lands were favourable given the strategic location and various continuous initiatives undertaken by the Melaka government to promote and attract various investment projects.
DRB-Hicom said the land were currently part of a larger oil palm estate managed by Tradewinds, and the group intended to obtain some recurring income by renting the land to the plantation company.
“The arrangement with Tradewinds, which will be deemed a recurrent related party transaction, is expected to be finalised prior to the completion date,” it said.
The proposed acquisition is expected to be completed by the first quarter of next year.
It said the purchase would be 65% funded by external borrowings while the balance was to be funded via internally generated funds.