KUALA LUMPUR (May 24): JHM Consolidation Bhd is acquiring three properties in Sungai Petani, Kedah from MIDF Property Bhd for a total of RM12.5 million.

In a filing with Bursa Malaysia, JHM said the first property, a 4,210 sq m freehold parcel of industrial land containing a 1½-storey detached factory, is priced at RM3.125 million.

The second property, a 7,558 sq metre freehold land with a 1½-storey detached factory, is priced at RM4.678 million.

The third property, a 6,625 sq metre freehold land together with a 1½-storey factory building, is priced at RM4.697 million.

All the properties are currently tenanted by JHM's wholly-owned subsidiary Morrissey Integrated Dynamics Sdn Bhd for use of its aerospace business unit, warehouse and office, and as factory for its electrical and electronic business unit respectively.

Hence, JHM said the acquisition is to enable the company to possess its own factory, instead of having its factory and operations offices in rented properties.

"The acquisition will be funded by a combination of internally generated funds and bank borrowings to be decided by the executive directors at a later stage, after taking into consideration its gearing level, interest costs as well as internal cash requirements for its business," it said, adding that it is expected to be completed within three months from the date of the agreement.

Through the acquisition, JHM expects it would improve and enhance operational efficiencies in the long term.

"Cost reduction is expected to be derived from the efficiencies achieved. Furthermore, JHM may expand the production area on the lands when required for its future expansion," it added. — theedgemarkets.com

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