Gabungan AQRS to buy industrial land in Hulu Langat for RM21m

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KUALA LUMPUR (Nov 3): Gabungan AQRS Bhd plans to acquire a 15.037-acre piece of leasehold industrial land in Sungai Lalang, Hulu Langat, Selangor for RM21.31 million, which will be developed into factory units with estimated total gross development value (GDV) of RM80 million.

In a filing with Bursa Malaysia today, the property development and construction company said its wholly-owned subsidiary AQRS The Building Company Sdn Bhd has signed a sales and purchase agreement with mattress and bedding furniture maker Goodnite Sdn Bhd for the proposed acquisition.

Gabungan AQRS said the proposed acquisition forms part of its business plans for 2014 and 2015, which is to strengthen and expand its construction division.

"As such, the group is looking for new land banks in strategic locations to develop the same into either commercial or residential properties," it said.

Gabungan AQRS said Goodnite has obtained the requisite planning permission to undertake and carry out a commercial development on the property comprising among others, the construction, development and sale of factories and offices.

Gabungan AQRS plans to revise and carry out the proposed development upon taking over the land.

The proposed development comprise of building 30 units of gated and guarded semi-detached factory units with estimated GDV of RM80 million, while expected gross profits to be derived is RM19 million.

"The proposed development is expected to be completed within two years from its commencement date," said Gabungan AQRS.

It plans to fund the proposed acquisition through a combination of internal funds, bank borrowings and cash from sale proceeds of the project.

"The proposed acquisition is to be completed within 24 months from the date of the SPA," it added.

Gabungan AQRS shares closed unchanged at RM1.72 today, with 388, 600 units traded. It has a market capitalisation of RM670.83 million.