7-Eleven unit pays RM19m for Seri Kembangan land to build food commissary

PETALING JAYA (April 29): 7-Eleven Malaysia Holdings Bhd (SEM) is pushing upstream into food production, with its 60%-owned subsidiary QVI Foods Sdn Bhd signing a Sale and Purchase Agreement (SPA) yesterday to acquire a parcel of freehold agricultural land in Seri Kembangan, Selangor for a cash consideration of RM19 million, or approximately RM205 psf, according to its announcement on Bursa Malaysia.

The land, measuring about 0.86 hectare (92,564 sq ft), is held under Geran 1198, Lot 1904, Mukim Cheras, District of Hulu Langat, and is currently used for fruit cultivation.

Its postal address is Kawasan Perindustrian Kampung Baru Balakong, 43300 Seri Kembangan — in an established industrial corridor in the southern Klang Valley.

Upon completion, the SEM group intends to establish a food commissary on the land, marking a strategic move to vertically integrate its food supply chain in support of the convenience store network's expansion and operational plans.

The acquisition will be funded through a combination of borrowings and internal funds.

The consideration is payable in three tranches: 2% was paid on February 24, this year prior to SPA execution, 8% was paid upon execution of the SPA, and the remaining 90% is payable within 90 days from the SPA date, with a further 30-day extension available subject to an 8% per annum interest rate on any outstanding balance.

The land will be acquired on an "as is where is" basis, free from all encumbrances and with vacant possession.

The vendors are eight individuals — Tan Eng Guan, Chong Mooi, Pang Chee Kum, Pang Chee Meng, Pang Mei Leng, Pang Chee Wai, Pang Mei Yee and Pang Mei Wan — who are the registered proprietors of the land.

None of SEM's directors or major shareholders have any interest, direct or indirect, in the proposed acquisition.

The proposed acquisition is not subject to shareholder or regulatory approval and is not expected to have any material effect on the group's net assets, earnings or gearing.

The highest percentage ratio applicable under Paragraph 10.02(g) of Bursa Malaysia's Main Market Listing Requirements is approximately 5.63%.

The acquisition is expected to be completed by the second quarter of 2026.

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