Hiap Huat’s unit buys Kemaman industrial asset for RM9.5m

• The asset located at Lot 60472 in the Teluk Kalung Industrial Area includes land, buildings, plant and machinery. The land spans 20,000 sq m and comes with a 60-year leasehold tenure that expires in June 2073.

PETALING JAYA (June 23): Hiap Huat Holdings Bhd’s wholly owned subsidiary, Relgnite Energy Sdn Bhd, has acquired an industrial property in Kemaman, Terengganu, for RM9.5 million from Paka Petroleum Sdn Bhd (in receivership), which is currently under the control of receivers and managers.

According to its exchange filing today, the asset located at Lot 60472 in the Teluk Kalung Industrial Area includes land, buildings, plant and machinery. The land spans 20,000 sq m and comes with a 60-year leasehold tenure that expires in June 2073.

Hiap Huat, which is involved in scheduled waste management as well as the manufacture of lubricants and paint products, said the property is designated for Integrated Low Pressure System (ILPS) operations, oil well cleaning and testing and the construction of related industrial buildings.

Any transfer, mortgage, or lease requires approval from the state authority, as stated in the land title restrictions.

Relgnite Energy agreed to buy the property on a “willing buyer, willing seller” basis after negotiations with the vendor’s receivers.

The price was determined after considering a market valuation of RM11.8 million, as assessed by IPC Island Property Consultants in March 2024.

The purchase will be funded using a mix of internal funds (RM1.9 million) and bank financing (RM7.6 million). The company expects this acquisition to improve operational efficiency, especially given the location’s proximity to its existing customer base in Paka, Terengganu.

The property comes with ready-to-use machinery, existing licenses, and an established customer base. This is expected to help Relgnite Energy speed up operations compared to setting up a new facility from scratch. The deal is expected to be completed by Dec 31, 2025.

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