Central Global acquires office space for RM19.5m

• The property will serve as the group's headquarters, warehouse and storage facility for vehicles and machinery after project completion.

KUALA LUMPUR (Oct 1): Manufacturing and construction firm Central Global Bhd (KL:CGB) is acquiring a four-storey office and showroom space, measuring approximately 48,690 sq ft, in Kota Kinabalu, Sabah, for RM19.5 million.

The transaction was executed by CGB's wholly-owned subsidiary, RYRT International Sdn Bhd, through a sale and purchase agreement with Sribina Resources Sdn Bhd.

In a bourse filing, Central Global stated that the proposed acquisition is part of its strategy to strengthen its position as a leading construction group in East Malaysia, particularly in Sabah.

The acquisition will also enable the group to cross-sell and expand its product offerings by stocking them in the building. Additionally, the property will serve as the group's headquarters, warehouse and storage facility for vehicles and machinery after project completion.

Central Global said the purchase will be funded through a combination of 15% internally generated funds and 85% bank borrowings.

As of June 30 this year, Central Global's cash and bank balances stood at RM3.7 million, with total borrowings of RM45.5 million.

The acquisition is expected to be completed within five months from the signing of the agreement.

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