KUALA LUMPUR: MI Technovation Bhd
has proposed to acquire a seven-storey light industrial building in Singapore for S$103.88mil, or approximately RM331.8mil, to establish a global operational hub for its vehicle technologies business.
In a filing with Bursa Malaysia, the group said its wholly-owned subsidiary, Ohima International Pte Ltd, had entered into a conditional sale and purchase agreement with Kim Hup Lee & Co. Private Ltd on Oct 30.
The property, known as KHL Building, is located at 25 New Industrial Road, Singapore, and has a gross floor area of 111,389 sq ft.
Mi Technovation plans to use the building as the headquarters for its vehicle technologies business unit, housing a main data and computing centre, a digital twin and artificial intelligence centre, as well as product development, sales, finance and customer experience operations.
“The proposed acquisition is undertaken to support the expansion of the group’s vehicle technologies business unit’s operations and to establish a larger headquarters facility in Singapore to serve as its global operational hub,” it said.
The purchase will be funded through a combination of bank borrowings, proceeds from the listing of Mi Material Holding Ltd on the Singapore Exchange and internally generated funds.
Based on its indicative funding plan, the group expects to finance RM247.2mil through bank borrowings, RM81.3mil from listing proceeds and RM3.3mil from internal funds.
Mi Technovation said the relocation of its Singapore headquarters, currently operating from leased premises in Queenstown, is expected to generate annual rental savings of approximately RM1.05mil.
The proposed acquisition is subject to shareholders' approval and other relevant conditions, with completion expected in the first quarter of 2027.
