KUALA LUMPUR: Gromutual Bhd's (GMutual) subsidiary, Rainbow Entity Sdn Bhd, is acquiring 4.12ha of land in Johor Bahru, from Senai Airport City Sdn Bhd for RM21.33 million.

In an exchange filing today, the property developer signed a conditional sale and purchase agreement (SPA) within Senai Airport to buy the land within the Senai Airport City development.

"The acquisition is part of GMutual's ongoing identification of suitable properties to further expand the company's business in the development of ready-built industrial facilities (RBF) for sale or lease to the supply chain of multinational companies operating in both Senai Airport City's free zone and non-free zone."

GMutual's expertise in RBF would complement and support Senai Airport City's ecosystem, leveraging on Senai Airport City's recent traction of numerous investments from notable foreign direct investments and domestic direct investments.

The acquisition would be funded from internally generated funds and/or bank borrowings to be decided by the executive directors at a later stage, after considering its gearing level, interest costs, and internal cash requirements for its business.

The estimated timeframe to complete the acquisition will be three months from the unconditional date with an extended completion period.