KUALA LUMPUR: RGT Bhd
's wholly-owned subsidiary Rapid Growth Technology Sdn Bhd has agreed to acquire two parcels of land with a building in Bukit Minyak Industrial Park in Simpang Ampat, Seberang Perai, Penang, from Permai Gas Sdn Bhd for RM16.8mil.
In a filing with Bursa Malaysia, the group said the first parcel of leasehold industrial land measures about 65,520 sq ft and comes with a three-storey office building with a single-storey open-sided factory.
The second parcel is leasehold industrial land measuring about 59,664 sq ft.
According to the group, the parcels have been appraised for market values of RM9.2mil and RM7.6mil respectively.
RGT said it will fund the purchase with banks borrowings and internally generated funds.
The group said the acquisition was for expansion purposes as its current capacity is expected to be fully utilised within three years.
It said it continues to receive new inquiries from potential customers in other industries, notably medical and consumer electronics industries.
Meanwhile, Rapid Growth Technology operates from a single manufacturing plant and office, and any disruption could hinder its ability to continue operations.
"The acquisition will mitigate this risk, enable the establishment of dedicated assembly and production lines for new customers and enhance production efficiency.
"Additionally, these new properties, being situated within the same industrial estate, will lead to cost savings in logistics and management," said RGT.
