KUALA LUMPUR: MQ Technology Bhd
’s (MQ Tech) wholly-owned subsidiary, Star Acres Sdn Bhd (SASB), has entered into a conditional sale and purchase agreement with Cash Support Sdn Bhd (CSSB) to acquire part of leasehold land in Klebang, Melaka worth up to RM19.5 million.
In a filing with Bursa Malaysia today, it said the 2.89 hectares of land is located approximately 10 kilometres (km) northwest of the Melaka city centre.
It said upon completion, the company intended to undertake a property development of two blocks of 27-storey serviced suites with a total of 1,000 units and 80 units of shop lots.
"The estimated gross development value (GDV) and gross development cost (GDC) of the proposed development is approximately RM275 million and RM200 million, respectively, with an estimated gross development profit of RM75 million,” it said.
It said the proposed development plans and ancillary applications are targeted to be submitted to the relevant authorities after the completion of the proposed acquisition, which is expected to be in the third quarter of 2023.
"The proposed development is expected to commence in the first quarter of 2025 and is expected to be completed within three years from the commencement date,” it said.
Meanwhile, MQ Tech, which principally engaged in investment holding and manufacturing, has proposed a diversification to venture into the property business following the land acquisition.
"The proposed diversification enables MQ Tech to venture into the property business, which is an industry with foreseeable demand and positive prospects.
"Further, the diversification allows MQ Tech to have a new income stream to enhance its financial performance as well as to reduce dependence on its existing manufacturing business,” it said.
It added that the company also proposed a variation of the utilisation of proceeds to be raised from the share issuance scheme of up to 30 per cent of the total number of issued shares in MQ Tech at approximately RM4.37 million.- Bernama
