QES Singapore unit to buy two Space Nova units for RM17.49m

PETALING JAYA (Sept 8): QES Group Bhd’s Singapore unit has agreed to acquire two freehold Clean Industrial (B1) units at Space Nova for S$5.47 million (RM17.49 million) to support its expansion in Singapore.

In a Bursa Malaysia filing on Tuesday (Sept 8), the test, measurement and automation solutions provider said QES (Singapore) Pte Ltd (QSG) entered into a sale and purchase agreement with JVA Nir Pte Ltd for units #05-04 and #05-05 at 21 New Industrial Road.

The fifth-storey units have a combined built-up area of about 314 sq m (3,380 sq ft). Unit #05-04 measures about 160 sq m and is priced at S$2.79 million, while unit #05-05 measures about 154 sq m and costs S$2.68 million.

Both units are freehold and approved for Clean Industrial (B1) use, with QES proposing to use them as offices.

QES said QSG anticipates stronger business growth from its product and market expansion initiatives, and that the acquisition would provide additional operating and product-demonstration space.

The purchase price was arrived at on a willing-buyer willing-seller basis after taking into account factors including the location, tenure, built-up area, intended use and prevailing prices of comparable industrial properties in the vicinity.

QES plans to fund about 90% of the consideration, or S$4.92 million, through bank borrowings, with the remaining 10%, or about S$550,000, from internally generated funds. About S$270,000, representing 5% of the purchase consideration, was paid as deposits on Aug 7.

Assuming the 90% debt financing, QES expects total borrowings to rise to RM77.19 million from RM61.45 million, while gearing would increase to 0.39 times from 0.31 times. The group said the acquisition is not expected to have a material effect on its earnings or earnings per share for the financial year ending Dec 31, 2026.

Under the SPA, the vendor is required to deliver vacant possession of the units by June 30, 2029. If it fails to do so, liquidated damages will accrue at 10% per annum on instalments paid by QSG until vacant possession is delivered.

The highest percentage ratio applicable to the transaction under Bursa Malaysia’s Main Market Listing Requirements is about 8.93%. QES said the acquisition does not require shareholder or regulatory approval, and none of its directors, major shareholders or persons connected with them has an interest in the transaction.

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