PETALING JAYA: Teamstar Bhd is acquiring a semi-detached factory (also known as the Meranti Jaya Warehouse) measuring approximately 14,522 sq ft within Lake 6 Entrepreneurs’ Park II in Puchong, Selangor, from Vibrant Galaxy Sdn Bhd for RM7.38mil.
In a filing with Bursa Malaysia, the ACE Market-listed furniture fittings retailer said the acquisition represents an opportunity for the group to own the Meranti Jaya Warehouse.
The Meranti Jaya Warehouse serves as a strategic location for the group’s owned distribution centre for its 28 ‘Teamstar’ retail outlets which will be in close proximity to its headquarter.
“This will enhance the group’s operational coordination and provide long-term operational stability by improving its supply chain efficiency as well as enable economies of scale in storage and transportation.”
Additionally, Teamstar said purchasing and owning its own distribution centre will mitigate the risk of relocation in the event of non-renewal of the existing tenancy agreement.
The company said the acquisition will also provide additional storage capacity to accommodate the increase in product stock keeping units and inventory at the group’s current headquarter and warehouse.
