Luxchem Buys Five Industrial Lands In Klang For RM45.6 Mln
KUALA LUMPUR, July 15 (Bernama) -- Luxchem Corporation Bhd, via its wholly-owned subsidiary Luxchem Trading Sdn Bhd (LTSB), has signed agreements to acquire five leasehold industrial plots in Mukim Kapar, Klang, for RM45.6 million.
In a filing with Bursa Malaysia today, the chemical product manufacturer said the lands, spanning a combined area of 4.03 hectares, come with leases expiring on March 28, 2095.
“The proposed acquisition forms part of the group’s business expansion strategy and disciplined capital allocation framework, representing a strategic move to diversify its asset base while optimising the use of surplus cash reserves.
“Rather than maintaining excess funds in fixed deposits with modest returns, the group is investing in real estate assets that offer greater long-term yield potential through capital appreciation, future development prospects and immediate rental income,” said Luxchem.
The plots are being acquired from two private firms, Leisure Harvest Sdn Bhd and Excellent Delight Sdn Bhd.
Luxchem said that, barring any unforeseen circumstances, the acquisition is expected to be completed within four months from the date of the sales and purchase agreements.
“The board believes that the proposed acquisition is in the best interest of the group, taking into account the strategic location and income-generating potential of the properties,” it said.
The group added that the acquisition will be funded through a combination of internally generated funds and bank borrowings.
-- BERNAMA