PETALING JAYA: Metronic Global Bhd
is proposing to acquire 81 units of serviced apartments at Marina Point, Klebang, Melaka from Sanichi Precision Mould Sdn Bhd for RM33.24mil.
In a filing with Bursa Malaysia, the company said the proposed acquisition is expected to contribute positively towards future earnings based on the estimated rate of return on investment and investment payback period.
“In addition to that, the proposed acquisition would enable the company and its subsidiaries to source alternative recurring income that is currently dependent on engineering services contracts that are cyclical in nature.
“The properties acquired are also expected to generate rental income, predictable cash flow and lower volatility compared to existing project-based revenue only.
Metronic said the value of the properties are also expected to appreciate over time and shall be able to protect the company against inflation.
It added that the rental rates are also expected to be revised upward as opposed to the company’s existing engineering margins that are continuously depressed under pressure from rising costs and competitive tender pricing.
