Jiankun International Bhd, a property development and construction firm, would build a commercial complex in Klebang, Melaka, with retail, serviced apartments, and office buildings.
The company said that the proposed development will benefit its financial performance because of the land's strategic location, which is adjacent to the Klebang beach and provides easy access to the North-South Motorway.
Its wholly-owned unit, Key Success Development Sdn Bhd (KSDSB), is purchasing 40,469 sq metres of land from Cash Support Group Sdn Bhd for RM26 million.
Jiankun told the stock exchange that upon completion of the acquisition, it will have an aggregate landbank of 30.54 acres (123,591 square metres).
It said that RM14 million of the RM26 million purchase consideration will be funded via a private placement, with Eclipse International Sdn Bhd subscribing for 70 million new shares, representing 19.42 per cent of Jiankun's total issued shares as of April 13.
As of April 13, Jiankun's issued share capital was RM76.18 million, consisting of 360.51 million shares.
Jiankun said that the remaining RM12 million of the purchase consideration will be financed through internal funds and bank borrowings.
