HCK plans purchase of commercial parcel in Damansara for RM10.7m

HCK plans purchase of commercial parcel in Damansara for RM10.7m
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KUALA LUMPUR (Nov 5): HCK Capital Group Bhd is planning on buying a commercial parcel at Empire City @ Damansara for RM10.71 million in cash.

The group said its indirect subsidiary Trilink Essential Sdn Bhd has entered into a sale and purchase agreement (SPA) with Cosmopolitan Avenue Sdn Bhd for the commercial parcel measuring 17,422 sq ft located at level 1, within zone 2 of the commercial complex.

The acquisition will be funded by internally-generated funds, HCK said in a filing with Bursa Malaysia.

“The proposed acquisition is strategically located in the Damansara Perdana area, which will be a synergistic purchase that will enhance the group’s property investment portfolio for recurring rental income,” HCK said, adding it also forms part of the group’s plan to broaden and expand its earnings base to improve its long term growth prospects.

The group said the acquisition is not expected to have any material effect on its earnings for the financial year ending Dec 31, 2019 (FY19), but is anticipated to contribute positively to the group’s future earnings.

Barring any unforeseen circumstances and subject to all relevant approvals being obtained, the acquisition is expected to be completed by the first half of 2023, HCK added.

Shares of HCK closed two sen or 1.64% higher at RM1.24 today, valuing the group at RM525.12 million.