KUALA LUMPUR: KSL Holdings Bhd’s wholly-owned subsidiary, KSL Development Sdn Bhd plans to purchase 34.028 hectares (84.087 acres) of freehold land in Pulai, Johor Bahru for RM109.88 million.
In a filing with Bursa Malaysia today, the group said it aims to develop the land into a mixed development project consisting of 2,000 units of residential and commercial properties.
"The development project is expected to commence in 2023 and is envisaged to spread over a period of eight to 10 years.
"Barring any unforeseen circumstances, the total gross development value of the project will range from RM800 million to RM850 million; whilst its gross development cost is expected to be around RM450 million,” it said.
Accordingly, an estimated gross development profit of between RM350 and RM400 million is expected to be derived for the group over the duration of the said development.,
Meanwhile, it said assuming the entire purchase consideration is to be satisfied by way of bank borrowing, the gross gearing ratio (total borrowing over shareholders’ fund) of KSL Group as at March 31, 2022 will reach 6.19 per cent and the net gearing ratio (after netting off available cash in hand) will become -1.04 per cent.
To date, the group has 982.17 hectares (2,427 acres) of land bank in Segamat, Batu Pahat, Muar, Mersing, Johor Bahru, as well as Kuala Lumpur and Klang.
Out of the total land bank, 47 per cent of the land bank is in various stages of approval, and 24 per cent is under various stages of development. - Bernama