Xin Hwa unit buys land in Plentong for RM27mil
KUALA LUMPUR: Xin Hwa Holdings Bhd (XHH) is buying two pieces of land measuring 44.05 acres in Plentong, Johor Baru, from Johor Corp, where it plans to build a new warehouse and an open yard for its fleet of vehicles.
In a filing with Bursa Malaysia, the logistics services provider said its wholly-owned subsidiary Xin Hwa Trading & Transport had accepted the letters of offer to acquire the land for RM26.53mil.
The sale and purchase agreements are expected to be inked within three months.
XHH said that the proposed transaction was in line with the group’s strategy to continue expanding its warehousing and distribution operations and to set up a facility for integrated logistics solution hub.
The two pieces of land, being located in Pasir Gudang Industrial Area next to the group’s existing warehouse, would provide convenience to the group for administrative purposes on construction of the new warehouse, it added.
Based on Xin Hwa’s latest annual report issued in July, the company has a warehouse in Kempas, Johor, and Pasir Gudang, Johor, which are close to full utilisation.
It has begun to build a new warehouse in Pasir Gudang that will increase its warehousing space from 404,000 sq ft to about 584,000 sq ft.