FM Global proposes RM37.72mil land acquisition for expansion

KUALA LUMPUR: FM Global Logistics Holdings Bhd’s wholly owned subsidiary, FM Global Logistics (M) Sdn Bhd (FMGLM) has proposed to acquire two parcels of land in Setia Alaman Industrial Park, Kapar for RM37.72mil cash.

FM Global, in a Bursa filing, said FMGLM entered into a sale and purchase agreement (SPA) with Petaling Garden Sdn Bhd to acquire one parcel of freehold vacant land in Setia Alaman Industrial Park measuring approximately 2.82 acres for RM18.79mil.

Prior to that, FMGLM had, on Feb 6, entered into a SPA with Petaling Garden to acquire one parcel of 2.84 acres of freehold vacant land in the same area for RM18.93mil cash.

FM Global said the proposed land acquisitions will be financed through internally generated funds and/or bank borrowings, the quantum of which has yet to be determined at this juncture.

“The proposed land acquisitions are to facilitate the group’s future expansion of its third-party logistics (3PL) warehousing and distribution services. The purchase consideration is reasonable and reflects the current price of similar lands near the properties,” it said.

“Given the properties are located in an area with good connectivity and amenities, the proposed land acquisitions are expected to contribute positively to the growth of the group when the properties are developed into warehousing and distribution services in the future,” FM Global said.

The group currently operates a total warehouse space of approximately 1.36 million sq ft in multiple countries including 285,000 square feet in Singapore.

In addition, there will be another 200,000 square feet of warehouse space by June 2024 when the construction of the new warehouse in Port Klang is completed.

“The proposed land acquisitions will increase additional warehouse space to the group when it is developed, and will significantly strengthen its 3PL capabilities in Malaysia,” FM Global said.