LB Aluminium Bhd is acquiring a piece of industrial land together with an industrial complex in Sungai Penaga Industrial Park, Subang Jaya, Selangor for RM25 million cash.
“The proposed acquisition will enable the group to establish an additional source of recurring income and furthermore to benefit from potential capital appreciation of the property in the foreseeable future,” LB Aluminium said in a filing with Bursa Malaysia today.
It added that its wholly-owned subsidiary Albe Metal Sdn Bhd (AMSB) today entered into a sale and purchase agreement with Facade Treatment Engineering Sdn Bhd for the proposed acquisition. The industrial complex comprises a 2-storey office building, a 2-storey detached factory, two 1-storey detached factories and a guard house.
AMSB had also entered into a three-year tenancy agreement for Facade Treatment to rent the property at a rental rate of RM125,000 per month.
LB Aluminium said it will fund the proposed acquisition via internal funds and/or bank borrowings.