PETALING JAYA: Hwa Tai Industries Bhd has entered into a conditional sale and purchase agreement on April 30 with Maple Synergy Sdn Bhd for the purchase of a 1-storey factory-cum-warehouse in Tongkang Pecah Industrial Estate, Batu Pahat, Johor, for a total consideration of RM1.08 million.
In a filing to Bursa Malaysia on April 30, Hwa Tai said the property would be used as additional factory and warehouse space as part of the continuous business expansion plans of the Hwa Tai Group.
“In addition, the property is located opposite Hwa Tai’s existing main factory in Batu Pahat, Johor, making the proposed purchase a synergistic exercise,” it said.
Hwa Tai is currently renting the property from the Vendor for warehousing purposes, at a monthly rate RM5,500. The tenancy is set to expire at the end of June 2010.The property is currently charged to Malayan Banking Bhd as security for banking facilities granted to Maple Synergy.