KUALA LUMPUR (Nov 4): Century Logistics Holdings Bhd has proposed to acquire two adjoining parcels of vacant industrial land totalling 358,108 sq ft in Klang from two unlisted firms for a combined RM38.68 million.

In a filing with Bursa Malaysia today, Century Logistics said its wholly-owned subsidiary, Century Total Logistics Sdn Bhd, had entered into sale and purchase agreements yesterday with Sierra Towers Sdn Bhd and Eight Edition Sdn Bhd for the proposed acquisitions.

“The proposed acquisitions are to facilitate Century Logistics’ expansion of its distribution centres in the Klang Valley,” it added.

The logistics provider noted that the first piece of land, measuring 174,506 sq ft, will be acquired from Sierra Towers for RM18.85 million.

The second tract, spanning 183,602 sq ft, will be acquired from Eight Edition for RM19.83 million.
 
The proposed acquisitions, which is expected to be completed by the first quarter of next year, will be funded by internal funds and bank borrowings.

The group also said it is formulating plans to construct warehouses and office buildings with the construction cost estimated at RM40 million to RM50 million, which would be funded via internal funds and bank borrowings.

The construction is targeted to commence in the first half of 2015 upon completion of the proposed acquisitions and is slated to be completed in the second half of 2016.

Century Logistics shares closed 0.68% lower at 73 sen today, bringing a market capitalisation of RM269.15 million.