KUALA LUMPUR (Nov 1): HIL Industries Bhd has proposed to acquire a three-acre piece of land in Kuala Lumpur for RM47 million cash to undertake  a condominium development.

The moulded plastic products maker and property developer said the freehold land is surrounded by landmarks such as Garden International School, Plaza Mont Kiara, 163 Retail Park, Hartamas Shopping Centre and Sri Hartamas Commercial Area.

In a filing with Bursa Malaysia on Wednesday, HIL said its indirect wholly-owned unit Amverton Prop Sdn Bhd is acquiring the land from A & M Modern Homes Sdn Bhd (AMMH), a wholly-owned subsidiary of Amverton Bhd.

HIL executive chairman and major shareholder Tan Sri Ng Boon Thong @ Ng Thian Hock is also a major shareholder of AMMH, and as such the proposed acquisition is deemed a related party transaction.

HIL said it has been continuously looking out for opportunities to obtain more development land within the Klang Valley to ensure the continuous growth of its property business.

"In view of the upcoming completion of the group’s ongoing projects, the proposed acquisition will enable the group to replenish its land banks and property development projects.

"The potential development on the land is also expected to increase the revenue and profit contribution from the property development segment as well as the overall financial performance of the group," it added.

HIL said it will fund the acquisition via internally-generated funds or bank borrowings. The acquisition is expected to be completed by the first quarter of 2024.

HIL shares were last traded on Oct 30 at 92 sen, giving the group a market capitalisation of RM307.31 million.