Prestar buying leasehold land for RM19mil

PETALING JAYA: Prestar Resources Bhd has proposed to buy a 2.05-acre parcel of leasehold land in Kampung Baru Subang, Shah Alam, together with the buildings built on the land for RM19.25mil.

In its filings with Bursa Malaysia, the group, which is principally engaged in the business of renting out property and investment holding, said it had entered into a sale and purchase agreement with Skyhub Technologies Sdn Bhd for the proposed acquisition of the property intended for the business expansion of Prestar and its subsidiaries.

It said the property to be acquired included a land measuring 8,304 square metres (sq m), or 2.05 acres, with a 99-year lease expiring on Nov 6, 2115, and two units of a single-storey, semi-detached factory cum a three-storey office building and two guardhouses erected on the land. The buildings are newly completed, with 5,379 sq m of net lettable space, of which 50% has been occupied by Skyhub.

“The property is located in the prominent industrial estate in Kampung Baru Subang, which offers excellent business potential due to its strategic location and accessibility,” Prestar said.

“The proposed acquisition is expected to expand the revenue and earnings contribution of the group, in particular for its material handling equipment, trading and services business,” it explained.

Prestar said the proposed acquisition would be financed through internally generated funds.

It said the proposed acquisition is not expected to have any material impact on the net assets and gearing, as well as its earnings, for the financial year ending Dec 31, 2018. However, the proposed acquisition is expected to contribute positively to the future earnings of Prestar.

Prestar’s shares fell three sen to close at 98 sen yesterday.