Xinghe Holdings (01891) announced that on April 30, 2024, the company's indirect holding subsidiary Eas...
According to the Zhitong Finance App, Xinghe Holdings (01891) announced that on April 30, 2024, East China Metallurgy Sdn Bhd, an indirect holding subsidiary of the company, plans to acquire two properties from ISO Concrete Products Sdn Bhd for a total purchase price of RM13.5 million (equivalent to approximately HK$22.14 million).
The properties are all located in Mukim of Teluk Kalung, District of Kemaman, State of Terengganu, Malaysia, with a total land area of approximately 127,949 square meters.
The director believes that the strategic location of the property (only 7 km from Teluk Kalong Industrial Area and only 3 km from MiEL Industrial Area), these two locations are famous for their dynamic industrial activities in Terengganu, Malaysia, providing the buyer with a clear geographical advantage. Taking into account that most of the buyer's current and potential customers are located in or operating business in the immediate vicinity of these regions, the proximity of the property to such industrial areas can further enhance service delivery, enhance the customer experience and enhance the relationship between the buyer and its customers.
By removing uncertain factors such as the seller's termination or non-renewal of the lease agreement, which may clearly disrupt the buyer's business operations, ownership of the property guarantees better business prospects. Buyers will also benefit from not having to pay property rental expenses and will receive significant long-term savings. Notably, the acquisition also brought the Group the best and most cost-effective investment because it guaranteed a substantial discount of about 10.50% of the current market value of the property.