KUALA LUMPUR, 1 August 2022 – Main Market listed company Ingenieur Gudang Berhad (formerly known as Dynaciate Group Bhd) (the “Group”) announced today that its wholly owned subsidiary, MGudang Properties Sdn Bhd (“MPSB”) had entered into a Conditional Sale and Purchase Agreement with Paradise Boulevard Sdn Bhd (“PBSB”) for the proposed acquisition of 149 units of the retail and commercial complex for RM9.07 million. The property investment is expected to yield long-term rental income for the Group by capitalising on the growth of e-commerce domestically.
The said retail and commercial complex is known as Pandan Safari Lagoon Shopping Complex and Water Theme Park, erected on the leasehold land located at Pandan Perdana, Bandar Ampang, Selangor. MPSB will be acquiring a gross property floor area measuring approximately 435,002 sqft out of 489,489 sqft which comprised of retail lots, carpark and rooftop.
A filing with Bursa Malaysia showed that the proposed acquisition would be satisfied in cash via a combination of borrowings, proceeds from the disposal of properties and/or internally generated funds, the proportion of which will be determined later.
Barring unforeseen circumstances, the proposed acquisition is expected to be completed by the first quarter of the calendar year 2023.
Post-acquisition, further costs will be incurred by MPSB to modify, refurbish and repurpose the property into storage and warehouse. The additional cost is subject to further assessment of contractor costs based on design, specifications and volume of repair works.
Commenting on the latest acquisition, Executive Director Melvin Lim 林民崇 said: “The Group has constantly been looking for properties that can generate recurring income in the long run. Thus, the proposed acquisition is consequential and complementary to the Group’s strategy to identify, invest and develop potential properties for capital appreciation and rental income.”
He said that value appreciation is crucial for its property investment and the result can be achieved through capitalising on its know-how to develop and repurpose the use of existing buildings.
“Our management is of the view that the continued growth of online presence with e-commerce by micro, small and medium enterprises lead to a growing adoption of online-to-offline (O2O) commerce and the need for storage space for their products,” he added.
Lim further elaborated that the commercial complex will be repurposed as a warehouse to provide useful storage services, especially for uprising new manufacturing and lifestyle industrial players focusing on e-commerce.
The strategically located storage and warehousing space are vital for efficient logistic services, which shall augur well for the demand on the Group’s property portfolio.
In addition to this latest acquisition, on June 14, via its wholly-owned subsidiary, Magnitude Resources Sdn Bhd, proposed to acquire a piece of freehold industrial land with buildings erected in Bentong, Pahang, for RM12.0 million.
The freehold industrial land is approximately 5.8 acres, with a double-storey office building annexed with a single-storey factory, a double-storey and one single-storey detached warehouse, and fixtures and fittings of the buildings, which includes machineries, plant, materials, and equipment.
On a separate note, the Group had on 27 July 2022 changed its name from Dynaciate Group Berhad to Ingenieur Gudang Berhad. The name change represents the Group’s new symbolic vision and to better reflect the nature of its business and future undertakings that focus on property investments.
