Advancecon buys land to build workshop for northern Selangor projects

KUALA LUMPUR (April 12): Advancecon Holdings Bhd is buying two parcels of industrial land in Gombak district for RM13.75 million to construct an in-house workshop catering to its northern Selangor projects.

In a filing with the stock exchange, Advancecon said its wholly-owned unit, Adcancecon Machinery Sdn Bhd, is acquiring the two leasehold parcels in Kota Puteri, Batu Arang from the Selangor State Development Corporation (PKNS).

The first parcel, measuring 217,678 sq ft, is being bought for RM6.52 million, while the second, measuring 241,391 sq ft, has a price tag of RM7.23 milion.

Advacecon said it needed the land to construct a workshop, known as “Kota Puteri Workshop”,  because it has in hand five earthworks and civil engineering projects located in the region with a total contract value of RM545.95 million.

The projects include site clearing, earthworks and ancillary works for Gamuda Gardens, Bandar Serai Development, Alam Perdana Development as well as earthworks and related works in Ijok.

Advancecon is also in charge of the construction and completion of civil works for the West Coast Expressway’s Assam Jawa-Tanjung Karang interchange.

The group said the acquisition also bodes well with Advancecon’s future expansion of its fleet of machinery, and possibilities of it securing more infrastructure projects in the northern Selangor region.

Advancecon intends to finance the acquisition via bank borrowings of RM8.18 million and internally-generated funds.

The construction cost of the workshop has yet to be ascertained, it added.

Shares in Advancecon closed one sen or 1.52% lower at 65 sen, for a market capitalisation of RM261.35 million. — theedgemarkets.com

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