Kawan Food has entered into a Sales And Purchase agreement RGP Warehouse Solutions Sdn. Bhd. to purchase three (3) parcels of vacant leasehold industrial land free from encumbrances measuring approximately 4.07 acres of land.
All three Lots have a lease period of 99 years, the lots will be purchased for approximately RM28.9 million. The food manufacturer is also purchasing another 2 plots of leasehold land in Shah Alam from PKNS 7,718 square meters in area 1.89 acres with its lease of 99 years and another plot of 1.12 acres with its lease of 99 years. Kawan Food will be paying the seller RM21.5 million for the plots.
With all five lots combined, the buyer will be paying a total purchase price of RM50.4 Million.
To group added the purchase of these lots is part of its mission to develop a new segment of the industry, manufacture a variety of products including plant-based products etc. in chilled, ambient aside from frozen food. It added this business strategy will provide it with an opportunity to create greater economic value and increase the earnings potential of Kawan Food.
Upon acquisition, it is proposing to build and construct a second manufacturing facility for its operations. In addition, to expand the cold room facility as a warehouse and cold chain distribution for in-house and external products, equipped with new technology such as robotic automated warehouse etc. to cater for frozen, chilled, and ambient food products.
This would enable Kawan to explore new ideas and grow product diversity for new markets. Also, with the strategic location in the Shah Alam area, there is a potential reduction in logistic costs for deliveries in the local market.
