CAB Cakaran Corporation’s wholly owned subsidiary has secured leases over three parcels of state land for a modern poultry farming project with an estimated investment of RM105 million in Terengganu.
CAB Cakaran (Timur) Sdn Bhd (CABT) entered into three lease agreements with the Terengganu state government today for a combined land area of approximately 414.63 hectares.
The leases cover a 101.50-hectare parcel in Mukim Tasik, Setiu; a 28.43-hectare parcel at Padang Ragut Cermin Kanan, Mukim Jerangau, Dungun; and a 284.70-hectare parcel at Padang Ragut Kampung Papan, Mukim Kumpal, Dungun.
All three parcels are designated for agricultural use, specifically poultry farming, and will be leased for 21 ysears.
The annual lease rates are RM15,225 for the Setiu parcel, RM4,265 for the first Dungun parcel and RM42,705 for the second Dungun parcel.
CAB said the lease would support its strategy of expanding and strengthening its core poultry business while allowing the group to secure suitable land without the significant upfront capital expenditure associated with outright land acquisition.
The long-term lease is also expected to provide greater operational stability and allow the group to undertake longer-term planning and development of the project while preserving cash flow and financial flexibility.
The proposed project will be developed in two phases, with each phase involving an estimated investment of RM52.5 million.
Phase One will involve the construction of 50 chicken houses equipped with a Close House System, with an estimated aggregate rearing capacity of approximately one million chickens.
The first phase is expected to cost about RM52.5 million and be completed within approximately two years.
Upon completion, Phase Two will add another 50 close-house chicken facilities, providing an additional estimated rearing capacity of one million chickens.
The second phase is also expected to cost approximately RM52.5 million and take around two years to complete following the completion of Phase One.
This would bring the project’s total planned capacity to approximately two million chickens across 100 chicken houses.
The estimated RM105 million investment encompasses construction of the chicken houses, related infrastructure and supporting facilities, solar energy support systems, as well as preliminary site preparation and development works.
CAB said the investment estimate is based on its current assessment of the requirements for the overall development of the project and may be subject to further evaluation as development progresses.
