KUALA LUMPUR (Nov 16): Excel Force MSC Bhd is acquiring a commercial space in MYEG Tower within the Empire City mixed use development in Petaling Jaya from Empire City's developer Mammoth Empire Holding Sdn Bhd for RM9.86 million cash.

"We found the price and space size attractive, taking into consideration our future business expansion needs and that it will be ready for occupation in 18 months. As we are located in an up and coming commercial centre, it is an opportune time to take advantage of the current soft property market to make this acquisition," said Excel Force in a filing with Bursa Malaysia today.

"In the event of any delays in realising our business expansion plan, we can rent out the space and earn rental income when ready," it added. 

Excel Force has today entered into a sale and purchase agreement (SPA) with Cosmopolitan Avenue Sdn Bhd, a wholly-owned subsidiary of Mammoth Empire, for the acquisition. 

Excel Force has also on the even date entered into a put option agreement with Mammoth Empire to obtain an option at Excel Force’s sole discretion to sell the property back to Mammoth Empire at the sum equal to 66.67% of the purchase consideration within six months from the date of delivery of vacant possession of the property.

Excel Force said the option will only be exercised should there be any unforeseen circumstances beyond its control which may impact the group’s operations.

It added that the acquisition will be financed partially by internal funds and external borrowing.

"Barring any unforeseen circumstances, the acquisition is expected to be completed within 18 months from the date of the SPA," said Excel Force.

Excel Force shares closed down 0.5 sen or 0.88% at 56.5 sen today, with 525,100 shares done, bringing a market capitalisation of RM234.18 million.