Chin Hin Group Property buys Kota Damansara site for RM66m, plans industrial-commercial development

PETALING JAYA (March 16): Chin Hin Group Property Bhd (CHGP) announced on March 13 a strategic expansion of its development portfolio with the acquisition of an industrial property in Kota Damansara, Selangor, for RM66 million.

The transaction marks the group's first major foray into the industrial and commercial development segment, diversifying its predominantly residential development portfolio, CHGP stated via a media release.

The acquisition is being executed through CHGP's indirect wholly-owned subsidiary, Boon Koon Capital Sdn Bhd.

The subject property, comprising a three-storey office cum factory building on 16,222 sq m of leasehold land, is being acquired from Signature Cabinet Sdn Bhd, a wholly-owned subsidiary of Signature International Bhd.

CHGP plans to redevelop the Taman Sains Selangor 1 site into an integrated industrial-commercial hub designed to cater to logistics operators, light industrial users, and commercial businesses.

The location offers connectivity to the LDP, NKVE, and SPRINT highways.

Preliminary feasibility studies project the targeted redevelopment to have an estimated GDV of RM449.4 million against a Gross Development Cost (GDC) of RM361.6 million. This implies an estimated development margin of approximately 19%.

“This RM66 million acquisition represents a selective and strategic expansion into the industrial-commercial segment for CHGP. By securing this prime site in Kota Damansara, the group is acquiring a mature asset supported by an independent market valuation, with clear redevelopment potential into an integrated industrial-commercial hub with an estimated GDV of approximately RM449 million,” said CHGP group chief executive officer Chang Tze Yoong.

“While our core focus remains firmly on residential development, diversifying into high-demand industrial spaces allows us to broaden our earnings base and capture shifting market demands. Crucially, we are executing this while maintaining prudent financial management and a disciplined capital structure,” added Chang.

CHGP will fund the acquisition through a combination of internally generated funds and bank borrowings. Post-acquisition, the group’s pro forma net gearing is expected to move from 0.67x to approximately 0.81x.

This remains well within manageable levels, ensuring the group retains the financial flexibility to execute both its existing residential projects and this new industrial pipeline.

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