PETALING JAYA: Luxchem Corp Bhd
is acquiring five pieces of leasehold land measuring 40.340 sq m in Klang, Selangor, for RM45.59mil.
In a filing with Bursa Malaysia, the industrial chemicals supplier said it is acquiring the land 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.”
It said the land came with a tenancy agreement of nine years with an annual rental income of RM2.3mil with the option to rise 10% every three years.
