Bonia Corp Bhd’s wholly-owned subsidiary, Maha Asia Capital Sdn Bhd (MASB), has inked a Sale and Purchase Agreement (SPA) to acquire a piece of freehold land in Kuala Lumpur (KL) from Resaa Properties Sdn Bhd for RM35.51 million.
The acquisition includes land measuring 1,403.71 sq m as well as a double-storey bungalow and guard house, it said in a filing with Bursa Malaysia.
Bonia opined that the acquisition is a good opportunity for the company and MASB to potentially enjoy both capital appreciation and rental income due to the strategic location of the property.
“The property’s strategic location and connectivity to public transport infrastructure has made it a sought after address in Bukit Bintang, Kuala Lumpur.
“The property is located next to a piece of land currently owned by MASB that is of about the same size,” it said, adding Bonia and MASB can also further increase their source of revenue and income stream from the property.
The acquisition, slated for completion within four months from the date of the SPA, is not expected to have any material effect on the earnings and earnings per share of Bonia Group for the financial year ending June 30, 2023 except for interest costs to be incurred to fund the acquisition.