GFM buys 100% stake in Atmajaya for RM9mil

KUALA LUMPUR: GFM Services Bhd has proposed to acquire a 100%-stake in Atmajaya Arvino Sdn Bhd for RM9mil.

The integrated facilities management service provider, in a statement, said the acquisition would enable GFM to design, build, operate, and maintain a rest and service area (RSA) along the Kuala Lumpur-Karak Highway.

Atmajaya was awarded the approval by the Malaysian Highway Authority to construct and maintain the RSA in Karak, Bentong.

GFM said the upcoming RSA would feature a one-stop complex with facilities and amenities such as a food hall and restaurants, washrooms, prayer room, an agricultural retail hub (AgroBazaar), and two petrol stations.

A unique feature to be introduced is a designated lounge and parking area for truckers and bikers, known as a Truckers’ Centre, it added.

“This acquisition represents a strategic move for us to deepen our presence in the highway RSA business and tap into the growing demand for highway services in Malaysia. We have been exploring prospects in this sector and are excited about the potential benefits it brings. This aligns with our aim of expanding the group’s portfolio and increasing our income streams,” group managing director Ruslan Nordin said.

“At the same time, the AgroBazaar will provide a platform for local farmers and entrepreneurs to showcase their products to a larger audience. This project aligns with GFM’s aim to deliver quality facilities and services to customers while creating long-term value for not only the group’s shareholders, but also the community at large.”

GFM said the RSA would provide GFM with multiple recurring income streams from various sources, including retail rentals and operations of the petrol station.

The estimated development cost of the RSA is approximately RM40mil, which will be funded by GFM’s internally generated funds.

As of Dec 31, 2022, GFM has cash balances of RM98.9mil. The project is anticipated to commence in 2024 and to be completed in two years.

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