Sarawak Consolidated Industries Berhad has been asked by Bursa to give more details on the group's proposed land purchase deal in Bintulu which BusinessToday reported on last week.

The Exchange wants the group to share where the real estate is in the process of being developed or is intended to be developed, the name of the project, the type of development whether its residential, industrial, or commercial, number of units.

The group was also to give details on the total development cost; the expected commencement and completion date(s) of development; the gross development value; the stage or percentage of completion; the sources of funds to finance the development cost; and whether relevant approvals for the development have been obtained and date obtained.

This was following its announcement that it purchased a land lot with area 2.49 hectares situated in Bintulu for RM 9.225 million. The group had entered into a Sale & Purchase Agreement (SPA) through its indirect wholly-owned subsidiary SCIB Properties Sdn Bhd (SCIBP) to acquire the land from Ginteck Sdn Bhd, reportedly situated at Lot 1673, Block 32, Kemena Land District.

In response to the inquiry, SCIB said it is in the preliminary stage for development planning thus it is unable to determine total development cost and thus does not have a definite timeline for commencement and completion. It also said that the group is unable to determine the sources of funds to finance the development.

However, the group said upon completion of the land acquisition and finalisation of the above, it will submit the development plan to relevant authorities for approval.

As for the land, SCIB said the parcel of land has no appurtenances attached and that the purchase consideration was arrived on a "willing buyer and willing seller"
SCIB thinks that the land's prospects are positive, considering that it is situated in a prime area within 10 km of Bintulu city and is surrounded by medium to upper-class residential communities. The rationale for acquiring the agricultural land is to develop the land into residential development.

It noted that the cost of agricultural land is also lower than that of residential land. It is more economical to purchase agricultural land before its conversion into residential status. The estimated financial commitment required for the conversion of the agricultural land into mixed development and the source of funds.