Thursday, September 8, 2011

Ireka buys land for mix-use industrial development

KUALA LUMPUR: IREKA CORPORATION BHD [] is acquiring a parcel of freehold land in Kajang for RM22.43 million for a proposed gated and guarded mix-use industrial development.

It said on Thursday, Sept 8 that its wholly owned unit Ireka Engineering & CONSTRUCTION [] Sdn Bhd (IECSB) had entered into a sale and purchase agreement with Borncity Development Sdn Bhd to acquire the parcel of land measuring 83,339.82 sq metres (0.008ha) located with the Bukit Angkat Industrial zoning.

Ireka said the acquisition would be financed via internally generated funds and bank borrowings.

The company said that the concept for the proposed development was in the preliminary stage, and no submissions had been made to the authorities yet.

The total development cost and expected profits would be determined after the development order has been obtained at a later stage, it said.

IECSB will be sourcing for bank facility to finance the proposed development once the development planning has been finalised, it said.

On the rationale for the acquisition, Ireka said that it was a good opportunity for the group to extend its development operation to the industrial PROPERTIES [] sub-sector.

'From the market research, there is a very healthy demand for well designed industrial parks in prime location with superior infrastructural and road connectivity.

'The subject location is considered a prime industrial location with established industrial properties and excellent road connectivity,' it said.


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