Dynaciate to buy land in Seremban for RM13mil
19 Apr 2022
Dynaciate Group Bhd has proposed to acquire a 4.913-acre plot of vacant freehold commercial land in Seremban, Negri Sembilan, for a total consideration of RM13mil for future venture into warehouses and hubs for the logistics business.In an announcement with Bursa Malaysia, the company said its wholly owned subsidiary Magnitude Resources Sdn Bhd entered into a sale and purchase agreement with Grand Century Construction Sdn Bhd yesterday for the proposed acquisition.
The agreement would be satisfied in cash via a combination of borrowings, internally generated funds, proceeds received from the exercise and conversions of the convertible securities of the company and future fund raising.
“The proposed acquisition is consequential and complementary to the group’s plan in expanding its property portfolio via acquisition of land and properties to cater for future development activities into warehouses and hubs for logistic business by capitalising on and building on the group’s existing business segment which is construction,” it said.
“Our management is of the view that the growth of the industrial construction industry in the long-term is expected to continue to be driven by the country’s economic growth and the growth of the eCommerce, logistic and manufacturing industries,” it added.
As at the first quarter of 2021, there were a total of 118,480 industrial properties in Malaysia, an increase from 92,534 properties as at the first quarter of 2010.
The growing number of industrial properties will continue to drive the growth of the industrial construction industry, Dynaciate noted.
“Taking into consideration the prospects of the construction and the commercial and industrial property markets in Malaysia, our board is optimistic of the growth of our group in the construction industry through the opportunities to undertake construction, development and refurbishment works on the existing and future vacant lands and properties,” the company said.
Barring any unforeseen circumstance, it said the proposed acquisition was expected to be completed in the second half of 2022.