Dutch Lady to use RM181.2 mil of proceeds to build facilities in Negeri Sembilan
18 May 2021
Dutch Lady Milk Industries Bhd plans to use RM181.23 million of the RM200 million proceeds from the sale of its land and buildings in Petaling Jaya to finance the construction of manufacturing and other facilities in Bandar Baru Enstek, Negeri Sembilan.
The company, which in March signed a conditional agreement with UEM Land Bhd to sell the Petaling Jaya property, said it would build manufacturing and warehousing facilities, support facilities and office facilities on three parcels of freehold land spanning 13.2 hectares in Bandar Baru Enstek.
Dutch Lady would utilise the RM181.23 million within 36 months, it added in a filing with Bursa Malaysia today.
The company acquired the three parcels of land on Dec 17, 2020.
On the rest of the proceeds, Dutch Lady said RM17.27 million would be used to pay estimated expenses in relation to the proposed disposal, while RM1.5 million would go towards paying the security deposit in relation to the tenancy of the Petaling Jaya property.
Dutch Lady is taking a tenancy of the property for two years at a monthly rental of RM500,000 following the signing of the agreement to sell it to UEM Land. The company also has the option to renew the tenancy for two further terms of six months each.