INTEGRATED facilities management service provider, GFM Services Bhd, plans to pay RM23 million for a company that has land and appro- val for a rest and service area (RSA) in Sungai Muda, Penang, situated along the North-South Expressway (NSE).
The ACE Market-listed company told the local stock exchange last week that it planned to acquire a 100%-stake in Era Gema Bina Sdn Bhd from its two shareholders/ directors, Noorida Noor and Norhaslini Norzaid.
The acquisition will allow GFM Services to develop, operate and maintain the RSA on the northbound lane of the PLUS Malaysia Bhd's NSE.
The company, equally owned by the two directors, was incorpo- rated in 2003 with its principal acti- vity in development of building projects.
The Malaysian Highway Authority (LLM) had on July 14, 2008, awarded the rights to Era Gema Bina to undertake the RSA project. On Nov 23, it had also obtained LLM's approval in relation to the detailed design of the project, according to GFM Services' exchange filing.
It said the project will be developed on four contiguous parcels of freehold land totalling 150,490.23 sq ft.
GFM Services said the project is identified as one of the lay-bys known as R&R Sungai Muda, with the nearest R&R Gurun about 35km away, reachable within 30 minutes' drive from the project land.
It added the move paved the way for its expansion into the highway RSA business and to tap into the increasing demand for highway services in Malaysia.
"This venture aligns with GFM Services' vision to expand our portfolio and diversify income streams," said group MD Ruslan Nordin in a separate statement.
GFM Services said the project, expected to start in 2025 and to be completed in two years, is estimated to cost RM78 million for both the land acquisition and development cost.