SWS Capital units dispose of Muar industrial properties for RM15.5 mil

PETALING JAYA (July 23): SWS Capital Bhd’s wholly owned subsidiaries U.D. Wood Products Sdn Bhd and Syarikat U.D. Trading Sdn Bhd have entered into sale and purchase agreements to dispose of three leasehold industrial properties in Muar, Johor, to Seng Seang Trading Sdn Bhd for a total consideration of RM15.5 million.

The proposed disposals comprise two factory/warehouse assets and an industrial land parcel held under 99-year leases expiring on Dec 29, 2094, said the company in a Bursa Malaysia filing on Tuesday (July 22).

The first asset is a double-storey factory/warehouse erected on 5,502 sq m of leasehold industrial land held under PN 9607, Lot No. 8784, Mukim Jalan Bakri, Muar, disposed of by U.D. Wood for RM4.533 million.

The second asset is the 5,502 sq m leasehold industrial land parcel under the same title, owned by Syarikat U.D. Trading, for RM1.677 million.

The third asset is a two-storey office and single-storey factory/warehouse erected on 10,056 sq m of leasehold industrial land held under PN 9614, Lot No. 8791, also owned by Syarikat U.D. Trading, for RM9.29 million.

SWS Capital said the disposals form part of the group’s ongoing rationalisation exercise, allowing it to realise the value of its investments and redeploy the proceeds for other ventures within its operating units.

The disposal consideration was arrived at on a willing-buyer, willing-seller basis after taking into consideration the combined market value of RM12.48 million, based on valuation reports dated Dec 31, 2025 prepared by independent registered valuers Jordan Lee & Jaafar and Henry Butcher Malaysia.

The proposed disposals are expected to generate a net gain of RM2.015 million for SWS Capital after accounting for real property gains tax of RM927,000 and estimated expenses of RM78,000.

Of the RM15.5 million proceeds, SWS Capital intends to use RM14.495 million to settle amounts owing to the group by U.D. Wood and Syarikat U.D. Trading, with the remaining balance allocated towards real property gains tax and disposal-related expenses.

The proposed disposals are expected to be completed by the fourth quarter of 2026, subject to the fulfilment of conditions under the agreements, including obtaining the relevant consent to transfer from the state authority.

The transaction is classified as a non-related-party transaction under Chapter 10 of Bursa Malaysia Securities’ Main Market Listing Requirements, with the highest percentage ratio applicable at 10.72%.

No shareholders’ approval is required for the proposed disposals, and SWS Capital said its directors, major shareholders and persons connected to them have no interest in the transaction.

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