Senheng New Retail Berhad has announced it is acquiring its currently leased Central Distribution Centre for a purchase consideration of RM75.8 million.
Through its wholly-owned subsidiary Senheng Electric (KL) Sdn Bhd, the Group has entered into a Sale and Purchase Agreement with SDM Assets III Sdn Bhd (SDM), a wholly-owned subsidiary of Sime Darby Property MIT Development Sdn Bhd, to secure ownership of CDC. The group said it would save RM4.2 million in rental from the acquisition.
The purpose-built centre has been tenanted by Senheng since 2020 and is integral to the Group’s supply chain management, optimizing logistics and enhancing customer experience. Situated in Klang, Selangor, the CDC functions as the main distribution hub for Senheng, where products from suppliers are received, stored, and subsequently distributed to regional hubs and customers in the Central region of Peninsular Malaysia.
The CDC encompasses a built-up area of 200,035 square feet (sq. ft.), comprising a warehouse, offices, and ancillary buildings on a 6.6-acre freehold industrial land. To finance the RM75.8 million CDC acquisition, the Group will procure bank borrowings of RM45.8 million and reallocate RM30 million from its Initial Public Offer (IPO) initially designated for its Territory Champion expansion strategy.
