PETALING JAYA: MI Technovation Bhd
’s earnings growth could face headwinds from higher financing costs and capital expenditure following its planned RM331.8mil acquisition of a Singapore industrial building.
On Oct 30, 2026, the group – via its wholly-owned subsidiary Ohima International Pte Ltd – entered into a conditional sale and purchase agreement with Kim Hup Lee and Co (Pte) Ltd to acquire KHL Building for S$103.88mil (RM331.8mil) in cash.
The vacant seven-storey freehold light industrial building at 25 New Industrial Road, Singapore has a gross floor area (GFA) of 111,389 sq ft and will serve as the global headquarters and operational hub of its vehicle technologies business unit.
Apex Research said the acquisition was priced fairly at S$103.88mil per sq ft of GFA, broadly in line with the neighbouring Fujifilm Building’s April 2026 approximate S$943 per sq ft of the transaction.
However, the research house flagged concerns over whether the property and operations housed within it could generate sufficient returns to justify the acquisition and financing costs.
The purchase will be funded largely through RM247.2mil in bank borrowings, representing 74.5% of the price.
Additionally, annual rental savings of RM1.05mil will only begin after the group’s existing Singapore headquarters lease expires in November 2028.
Apex Research estimated annual financing costs of RM6.6mil, resulting in a negative carry of about RM5.5mil a year.
