Main Market listed company Dynaciate Group Bhd announced today the proposed acquisition of a freehold industrial land as part of its ongoing strategy to identify, invest and develop potential industrial land and buildings.
In a filing with Bursa Malaysia, Dynaciate said that its wholly-owned subsidiary, Magnitude Resources Sdn. Bhd had entered into a sale and purchase agreement with Powernet Industries Sdn. Bhd. (“PISB”) for the proposed acquisition of the freehold industrial land with buildings erected in Bentong, Pahang (“Bentong Property”) for a total cash consideration of RM12.0 million.
PISB is principally involved in the textile manufacturing of warp-knitted fabrics. It is a wholly-owned subsidiary of Main Market listed KPower Berhad, which is an investment holding company that focuses on renewable energy, construction-related activities and specialized engineering services.
The Bentong Property is a freehold industrial land measuring approximately 5.8 acres, with a double-storey office building annexed with a single-storey factory, a double-storey and one single-storey detached warehouses, as well as fixtures and fittings of the buildings which includes machineries, plant, material and equipment.
It is a noteworthy location, near Kawasan Perindustrian Bentong, just 5.3 kilometres to the South-East of Pekan Bentong, and 2.1 kilometres to the north of Bentong Toll Plaza of the Karak Highway. The Bentong Property is expected to benefit from other projects within close proximity such as the Malaysia China Kuantan Industrial Park (MCKIP) and the revival of the East Coast Rail Link (ECRL) Genting Tunnel Project in Bentong.
Dynaciate Group Berhad Executive Director Melvin Lim said: “Having seen the increasing demand and growth in industrial property markets in Malaysia, we are confident that the proposed acquisition will contribute positively to the Group’s future earnings. This is taken into consideration with the strategic location of the Bentong Property, as well as the provision for its future property value appreciation within its vicinity.
We are actively expanding our property portfolio, capitalising on the Group’s construction resources in particular within the industrial land and building sector to increase the value of our property investments. Pushing forward, our ultimate portfolio strategy is to identify, invest and to develop the ever-growing capital appreciation and rental income potentials within the said industrial market.”
The latest proposed acquisition which will be financed through borrowings, is expected to be completed by second quarter of the calendar year 2022.
Dynaciate had on 7 June 2022 proposed to dispose one of its freehold land with buildings erected located in Pulau Pinang for RM80.0 million. The market value of the property saw a significant appreciation over the years, and by monetising its investment in the subject property, the Group is able to realise a net gain of approximately RM19.8 million.
The disposal consideration will be largely utilised for its property business (i.e. industrial property construction, development and investment) to be provisioned towards its capital appreciation and potential yield gain from multiple property investments.