KUALA LUMPUR (June 22): Dynaciate Group Bhd has proposed to acquire a freehold industrial land measuring 7,690 sq metres in Nilai, Negeri Sembilan from a unit of Sime Darby Property Bhd to expand its property portfolio.

The property belonging to Sime Darby Property (Nilai) Sdn Bhd in Setul district consists of a single-storey factory building with a two-storey office building, Dynaciate said in a stock exchange filing.

The proposed acquisition for RM15 million is in line with its strategy to identify and develop potential industrial properties to generate capital appreciation and rental income, the group said.

“The Nilai property is located in Sime Darby XME Business Park, the first project under the Malaysia Vision Valley 2.0, an economic growth corridor launched in late 2018 to promote development zones.

"It is connected to major highways such as the North-South Expressway (2km), Elite Highway (4.4km) and LEKAS Highway (7.1km), allowing easy access to Kuala Lumpur, Putrajaya, Seremban, Johor and Singapore," Dynaciate added.

The group said the deal is not expected to have immediate material impact on its earnings for the financial year ending Nov 30, 2022, but its gearing may increase in the event that the group obtains financing or debt funding to partially finance the acquisition.

Shares in Dynaciate closed down half a sen or 4% at 12 sen on Tuesday (June 21), giving the group a market value of RM112.31 million.

Edited by S Kanagaraju