Revenue Group buys land for RM44m to house ops under one roof

KUALA LUMPUR (Aug 16): Payment solutions provider Revenue Group Bhd said it is acquiring four land plots in Mukim Batu for RM44 million to house its subsidiaries’ administrative and operations, as well as technical team under one roof.

The plots have a combined land area of 8,899 sq metres and a combined gross floor area of 5,235 sq metres, the group said in a bourse filing.

The purchase of the land from Starplus Corp Sdn Bhd will be funded via a combination of internally-generated funds and bank borrowings, said Revenue.

“The group estimates that 90% of the total consideration (approximately RM39.6 million) will be funded via bank borrowings and the remaining 10% (RM4.4 million) will be funded via internally-generated funds,” it said.

Revenue said it currently operates from six locations in the Klang Valley, with its headquarters located at Kepong Business Park.

The group is renting four offices and one warehouse or storage space in Klang Valley. All of its offices and warehouse or storage space are currently fully occupied.

It said upon completion of the development of the acquired land, the group will cease the rental of other offices in the Klang Valley and relocate to this new premises. ‘

“The group intends to convert the existing headquarters into a disaster recovery centre, as part of its Business Continuity Plan which will serve as a back-up centre for its technology infrastructure and data centre,” said Revenue.

The acquisitions, it said, are expected to be completed by the second half of 2021.

Shares of Revenue closed five sen or 2.63% higher at RM1.95, valuing the group at RM895.9 million.

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