PETALING JAYA: Luxchem Corp Bhd
is acquiring five pieces of leasehold land measuring 40.340 sq metres in Klang, Selangor, for RM45.59mil.
In a filing with Bursa Malaysia, the industrial chemicals supplier said it is acquiring the lands from Leisure Harvest Sdn Bhd and Excellent Delight Sdn Bhd.
“The proposed acquisition is in line with the group’s business expansion strategy and disciplined capital allocation framework. It represents a strategic initiative to diversify the group’s asset base while optimising the utilisation of surplus cash reserves.
“Rather than maintaining excess funds in fixed deposits with modest returns, the group is investing in real estate assets that offer higher long-term yield potential through capital appreciation, future development prospects and immediate rental income.”
Luxchem said the lands come with a tenancy agreement of nine years generating annual rental income of RM2.3mil with the option to increase 10% every three years, providing the group with a stable and recurring rental income stream upon completion of the acquisition.
“This income-generating asset is expected to enhance cash flow visibility and support the group’s earnings base over the medium term.”
