KUALA LUMPUR (Sept 14): Latitude Tree Holdings Bhd is leasing a parcel of land measuring about 44,193 square metres in Binh Duong province, Vietnam, as preparation for expansion.
In a filing with Bursa Malaysia, Latitude Tree said its wholly-owned subsidiary L-Tree Resources Sdn Bhd (LTRSB) has entered into an In-Principle Agreement with Investment and Industrial Development Joint Stock Corporation (IIDJSC) today for leasing the land in Vietnam.
Latitude Tree said the tenure term starts from Sept 14 until June 30 2057 and the total rental is RM12 million.
“The transaction is in line with Latitude Tree’s long-term corporate strategies and business plans to expand and grow its operations in Vietnam. The location of the land is strategic as the it is adjacent to its existing factory in Ben Cat District, Vietnam,” the announcement said.
Latitude Tree added that the land is strategically located next to its existing factory which will allow the group to increase its production or warehouse facilities expediently and efficiently. Together, the transaction will enable the group to improve its operations and may also enhance its investment income in the long run with capital appreciation potential.
IIDJSC is a company incorporated in Vietnam.
The principal activity of IIDJSC including Investment and development of infrastructure for industrial parks, township, real estate, commercial and residential projects, hospital and healthcare service, education and training, public transportation and telecommunication.
Latitude Tree said the land lease rental of the transaction will be financed by internally-generated funds and bank borrowings.
“Barring any unforeseen circumstances, subject to the fulfilment of all conditions as stipulated in the Agreement and the required approvals (if applicable) being obtained, the Transaction is expected to be completed by May 31, 2019,” it added.
Shares in Latitude Tree was unchanged at RM3.61 today, valuing it at a market capitalisation of RM335.37 million. — theedgemarkets.com
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