April 16 Dijaya Corporation Berhad has agreed with the Selangor state government to buy 1,172 acres of land for 1.3 billion ringgit ($427 million), the property firm said in a stock exchange filing late on Monday.
The purchase, made through Dijaya's wholly owned unit Sapphire Index Sdn Bhd, will more than double the firm's land bank, which currently stands at 800 acres.
The 1.3 billion ringgit price tag inludes the cost of the land at 537 million ringgit, interest costs, a proportion of the development value of the land and a share of profits.
Dijaya said it will pay for the land through a deferred payment deal lasting 20 years by using internally generated funds or bank borrowings or a combination of both. ($1 = 3.0415 Malaysian ringgits) (Reporting By Siva Sithraputhran; Editing by Chris Gallagher)