PTT Synergy acquires land in Rawang for RM60 mil to develop warehouse

• A single-storey industrial building equipped with an automated storage and retrieval system (ASRS) will be developed on the land, according to the group in a filing with Bursa Malaysia on Friday. The building will then be leased or rented to a third party.

KUALA LUMPUR (July 18): Construction outfit PTT Synergy Group Bhd (KL:PTT) has proposed to acquire 4.56 hectares of freehold land in Rawang, Selangor, for RM60 million to build a commercial warehouse.

A single-storey industrial building equipped with an automated storage and retrieval system (ASRS) will be developed on the land, according to the group in a filing with Bursa Malaysia on Friday. The building will then be leased or rented to a third party.

The group submitted its development application to the relevant authorities on June 3, the filing read, adding that the completed facility is expected to generate RM22.2 million in annual rental income.

PTT said its wholly owned subsidiary, PTT Logistics Hub 2 Sdn Bhd, which is principally involved in the rental and operational leasing of ASRS-equipped warehouses, has entered into a deal to buy the land, divided into eight parcels, from Koperasi Kakitangan Bank Rakyat Bhd.

PTT noted that the acquisition was made at a slight discount to the current market value of RM62.32 million, based on a valuation by City Valuers & Consultants Sdn Bhd, an independent property valuer.

The group said it will pay for the acquisition in cash, funded via a combination of internally generated funds and bank borrowings.

The development of the industrial facility is expected to carry a cost of RM270 million, which will also be financed through a similar mix of internal funds and bank borrowings. Construction is slated to begin on July 31 with completion targeted within 18 months.

PTT expects the land acquisition to be completed within four months.

Shares in PTT, which have gained more than 12% year-to-date, closed three sen or 2.42% higher at RM1.27 on Friday, giving the group a market capitalisation of RM548.85 million.

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