Main Market listed company Dynaciate Group Bhd announced today yet another proposed acquisition of a freehold industrial land, this time in Seremban, Negeri Sembilan following its proposed acquisition of freehold land in Bentong, Pahang last week.
In a filing with Bursa Malaysia, Dynaciate said that its wholly-owned subsidiary, Magnitude Resources Sdn. Bhd had entered into a conditional sale and purchase agreement with Sime Darby Property (Nilai) Sdn Bhd (“SDPN”) for the proposed acquisition of all that piece of freehold industrial land with buildings erected in Nilai, Seremban for a total cash consideration of RM15.0 million.
SDPN, a wholly-owned subsidiary of Sime Darby Property Berhad, is principally involved in property development, investment, and provision of property management services.
The Nilai Property, which is currently under construction, is a freehold industrial land measuring approximately 7,689.62 square metres, with a single-storey detached factory and a two-storey office building.
The prospects of the Nilai Property include its location in the Sime Darby XME Business Park, the first project under the Malaysia Vision Valley 2.0 mega project which is an economic growth corridor launched in December 2018 to be an extension and decentralization of the Greater Kuala Lumpur.
It is also connected to major highways with easy access to Kuala Lumpur, Putrajaya, Seremban, Johor and Singapore, as well as the Nilai Inland Port (4km away) and Kuala Lumpur International Airport (25km away). Furthermore, Nilai will be the second stop for the East Coast Rail Link located close to Nilai 3 which will provide passenger and freight services.
Dynaciate Group Bhd Executive Director Melvin Lim added: “In view of the growth of the e-commerce industry in Malaysia, strategically-located storage offices and warehousing spaces are vital for efficient logistic services. Therefore, we are confident that the proposed acquisition shall augur well for the Group’s property portfolio and contribute positively to the Group’s future earnings.”
The latest proposed acquisition which will be financed through a combination of internally generated funds, bank borrowings and proceeds from a private placement exercise, is expected to be completed by the second quarter of the calendar year 2024.
Previously on 14 June 2022, Dynaciate had proposed to acquire a 5.8-acre freehold industrial land with buildings erected in Bentong, Pahang for a total cash consideration of RM12.0 million.
Dynaciate said that the recent proposed acquisitions will add value to its property portfolio and is in line with the Group’s strategy to spot, lock and model potential industrial land and/or buildings for the future harvest of capital appreciation and rental income.
