Ingenieur Gudang takes over Pandan Safari for RM9.07 million
KUALA LUMPUR: Ingenieur Gudang Berhad (formerly known as Dynaciate Group Bhd) through its wholly owned subsidiary, MGudang Properties Sdn Bhd (MPSB) signed a Conditional Sale and Purchase Agreement with Paradise Boulevard Sdn Bhd (PBSB) for the proposed acquisition of 149 units of the retail and commercial complex at a price of RM9.07 million.
The property investment is expected to generate long-term rental income for the Group by leveraging the growth of e-commerce in the country.
The retail and commercial complex is known as Pandan Safari Lagoon Shopping Complex and Water Theme Park, which was built on leased land located in Pandan Perdana, Bandar Ampang, Selangor.
MPSB will acquire a gross real estate floor area of approximately 435,002 square feet out of 489,489 square feet consisting of retail lots, parking and rooftop space.
A filing with Bursa Malaysia indicates that the proposed acquisition will be met through cash through a combination of borrowings, proceeds from property disposals and/or internally generated funds, the proportion of which will be determined later.
Barring any unforeseen circumstances, the proposed acquisition is expected to be completed in the first quarter of calendar year 2023.
After acquisition, further costs will be borne by MPSB to renovate, refurbish and reuse the asset as storage and warehouse space. Additional costs are subject to further assessment of contractor costs based on design, specifications and amount of repair work.
IGB Executive Director Melvin Lim said, his party is always looking for properties that can generate recurring income in the long term.
Therefore, he said, the proposed acquisition is consequential and complementary to the Group’s strategy to identify, invest and develop potential properties for increased capital and rental income.
He said increasing value was important to his property investment and the results could be achieved by leveraging his knowledge to develop and re-use existing buildings.
“Our management is of the opinion that the continued growth of online presence with e-commerce by micro, small and medium enterprises leads to an increasing use of online to offline (O2O) commerce and the need for storage space for their products,” he added.
Lim said the commercial complex will be repurposed as a warehouse to provide beneficial storage services, especially for the rise of new manufacturing and lifestyle industry players focused on e-commerce.
Strategically located storage and warehouse space is essential for efficient logistics services, which will bode well for demand across the Group’s real estate portfolio.
In addition to this latest acquisition, IGB, on June 14, through its wholly owned subsidiary, Magnitude Resources Sdn Bhd, proposed to take over a freehold industrial plot of land with a building erected in Bentong, Pahang, for RM12.0 million.
The freehold industrial land is approximately 5.8 acres, with a two-story office building plus a one-story factory, a two-story and a single-story warehouse, and building fixtures and fittings, which include machinery, plant, materials, and equipment.
On a separate note, the Group has changed its name from Dynaciate Group Berhad to Ingenieur Gudang Berhad on 27 July 2022. The name change signifies a new symbolic vision of the Group and to better reflect the nature of its business and future endeavors focused on property investment.
source – Dagang News
