This article first appeared in The Edge Financial Daily on February 13, 2018

KUALA LUMPUR: Ajinomoto (Malaysia) Bhd is buying a piece of freehold land measuring 2.03 million sq ft in Techpark @Enstek in Seremban, Negeri Sembilan from Lembaga Tabung Haji for RM86.08 million to grow its operations and expand its manufacturing facilities.

In announcing the planned purchase to Bursa Malaysia yesterday, Ajinomoto Malaysia said it intends to develop and construct new manufacturing facilities on the property, which would strengthen the group’s efficiency and competency in providing quality products to customers.

It said the land purchase would be funded through available cash. It also said the total development cost of the new facilities is still too early to ascertain, but it is expected to be funded using internal funds and/or bank borrowings.

In the bourse filing, Ajinomoto Malaysia said it entered into a sale and purchase agreement with the pilgrims’ fund and the fund’s designated vendor, THP Enstek Development Sdn Bhd, for the purchase.

The land comprises four contiguous lots, with a strip of land meant to be a road reserve between two of the plots.

The purchase consideration was decided on a “willing-buyer, willing-seller” basis after considering the land’s market value at RM41 per sq ft as at Feb 6, 2018 by independent registered valuer Messrs Jordan Lee & Jaafar Sdn Bhd.

Ajinomoto Malaysia expects the proposed land buy to be completed by July 31, 2019.

Ajinomoto Malaysia shares rose 34 sen or 1.73% to RM19.96, for a market capitalisation of RM1.21 billion.