Chin Hin Property buys Kota Damansara industrial site for RM92.5 mil, plans RM612 mil logistics hub

PETALING JAYA (June 4): Chin Hin Group Property Bhd (CHGP) is acquiring a factory and warehouse complex in Selangor Science Park 1 for RM92.5 million, with plans to redevelop the site into a stratified industrial hub carrying an estimated gross development value (GDV) of RM612 million comprising about 322 units in Kota Damansara.

The acquisition, announced yesterday in a Bursa filing, was made through CHGP's wholly-owned subsidiary Chin Hin Property (Tebrau) Sdn Bhd (CHPT), which entered into a sale and purchase agreement with vendor Simm Ventures Sdn Bhd for the property at 16, Jalan Teknologi T.S.S.1, Selangor Science Park 1, Kota Damansara, Petaling Jaya.

What's being bought

The property sits on a 21,578 sq m (approximately 2.16 hectares) leasehold plot — tenure running until Oct 18, 2106. The existing improvements include a single-storey warehouse and factory annexed with a two-storey office block, a Tenaga Nasional Bhd sub-station, a two-storey canteen and dormitory building, a guard post and a refuse chamber, with a combined built-up of approximately 74,349 sq ft. 

The buildings are about 20 years old and currently vacant. The land is categorised for industrial use (Perusahaan) and is currently charged to Malayan Banking Bhd, which will be discharged upon completion.

The development plan

CHPT intends to develop the site into a stratified industrial hub comprising approximately 322 units, with individual built-ups ranging from 1,800 sq ft to 3,200 sq ft. The project carries an estimated GDV of RM612 million and gross development cost (GDC) of approximately RM480 million. Construction is expected to commence in 2Q2027, with completion targeted by the end of 2030.

Deal terms and funding

The RM92.5 million purchase price was struck on a willing-seller, willing-buyer basis, benchmarked against comparable industrial land and buildings in the same vicinity. CHPT had already paid a 2% earnest deposit of RM1.85 million prior to signing. 

A further 8% (RM7.4 million) was paid upon execution, with the balance 90% (RM83.25 million) due within three months of the unconditional date — once state consent to transfer is obtained. Completion of the acquisition is expected in 4Q2026, subject to state authority consent.

CHGP intends to fund the purchase price via a combination of internal funds and bank borrowings. On an illustrative basis assuming 70% debt financing — as disclosed by CHGP — total borrowings would rise from RM357,059,000 to RM421,809,000, lifting the group's net gearing from 0.53 times to 0.71 times based on the December 2025 balance sheet. Net assets per share remained unchanged at RM0.39, while pro forma earnings per share would ease marginally from 4.06 sen to 4.03 sen.

Who is the vendor?

Simm Ventures Sdn Bhd, incorporated in August 2020, is principally involved in real estate activities, construction of buildings and investment holding activities. It is equally owned by Sim Heok Hoo and Wong Ley Beng (50% each). 

The deal does not involve any related parties of CHGP, and no shareholders' approval is required as the highest applicable percentage ratio under Bursa's Chapter 10 thresholds stands at 17.04%, below the 25% threshold requiring shareholder approval.

Stake accumulation

Separately in Bursa filings yesterday, Chin Hin Group Bhd increased its direct stake in CHGP through open-market purchases totalling 605,900 shares on May 28 and 29 — 563,300 shares at RM1.059 on May 28 and 42,600 shares at RM1.043 on May 29 — bringing its direct holding to 789,430,970 shares or 56.995% of CHGP. 

The purchases were made outside a closed period. Corresponding deemed-interest disclosures involving Divine Inventions Sdn Bhd, PP Chin Hin Realty Sdn Bhd, Datuk Seri Chiau Beng Teik and Datuk Wira Chiau Haw Choon were also lodged under Sections 138 and 219 of the Companies Act 2016.

Strategic context

The acquisition expands CHGP's industrial development landbank in Selangor and aligns with the group's stated strategy of sourcing new landbank opportunities to strengthen its property development segment. The board said it expects the project to contribute positively to future earnings.

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