Kimlun plans residential property project in Kota Tinggi

KUALA LUMPUR: Kimlun Corp Bhd plans to undertake a residential property project in Kota Tinggi, Johor following the purchase of 29 parcels for RM28.30mil cash.

It had on Wednesday it had inked a sale agreement with two individuals to en bloc purchase 29 parcels of contiguous freehold land measuring about 140.8 acres.

The next stage for Kimlun is to convert the agricultural land to residential status a year after it completed the acquisition.

Kimlun said the development application would be submitted to the relevant authorities for approval after getting the go-ahead from the state authority which includes the conversion application and finalisation of the development planning.

“The source of funds to finance the development is likely to be from internally generated funds and bank borrowings,” it said.

The site is about two km from the Kota Tinggi town centre and this would enable Kimlun to increase the size of its land bank in strategic location to enhance its future revenue and earnings.

The land acquisition will be satisfied via a mix of bank borrowings and internally generated funds.
Assuming 60% is financed via commercial loans, it said the gearing ratio of the group was expected to increase by 0.04 times to 0.44 times.

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