Poh Huat ac­quir­ing ware­house in Aus­tralia

> Part of group’s plan to ex­pand be­yond Malaysia, Viet­nam and South Africa

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Poh Huat Re­sources Hold­ings Bhd is buy­ing a de­tached ware­house cum of­fice-show­room in South Dan­de­nong, Vic­to­ria, for A$4.25 mil­lion (RM13 mil­lion) in a bid to es­tab­lish an op­er­a­tional base in Aus­tralia.

The Poh Huat group is prin­ci­pally in­volved in the man­u­fac­tur­ing and sale of home and of­fice fur­ni­ture. It has op­er­a­tional bases in Malaysia, Viet­nam and South Africa. As part of its ex­pan­sion, the group in­tends to set up op­er­a­tional bases in more coun­tries.

“The de­mo­graph­ics and tra­di­tions of the Aus­tralians are sim­i­lar to the West­ern coun­ter­parts in North Amer­ica and the UK where the group’s prod­ucts are well ac­cepted.

“While the pop­u­la­tion of Aus­tralia is rel­a­tively small com­pared to the group’s tra­di­tional mar­kets, the af­flu­ence of the res­i­dents of ma­jor cities in Aus­tralia pro­vides good op­por­tu­ni­ties for the group to ex­pand its pres­ence in this rel­a­tively un­tapped mar­ket,” Poh Huat said in a stock ex­change fil­ing yes­ter­day.

It will fi­nance the pur­chase through in­ter­nally gen­er­ated funds.

In con­junc­tion with the ac­qui­si­tion, the com­pany will in­cor­po­rate an Aus­tralian sub­sidiary to hold the prop­erty and to es­tab­lish a fur­ni­ture sale and dis­tri­bu­tion busi­ness in Aus­tralia.

“The sub­ject prop­erty fa­cil­i­tates the es­tab­lish­ment of a ware­hous­ing cum dis­tri­bu­tion fa­cil­ity near to Mel­bourne, Aus­tralia. With this fa­cil­ity, the group can ef­fi­ciently con­sol­i­date the ex­port and stor­age of a wider ranges of of­fice and home fur­ni­ture in smaller quan­tity to suit the mar­ket de­mand of Aus­tralia.”

The ware­house cum of­fice-show­room com­prises a 2,807 sq m sin­gle-storey high clear span ware­house with a 315 sq m of­fice with retail/show­room fa­cil­i­ties at the front of the prop­erty. The prop­erty is sit­u­ated on a 5,265 sq m par­cel of sub­di­vided com­mer­cial land.

The prop­erty is lo­cated in Es­tate One in East Dan­de­nong, one of the key in­dus­trial es­tates in the struc­ture plan for the South Dan­de­nong In­dus­trial Area Ex­ten­sion.

The for­ma­tion of the Aus­tralian sub­sidiary and the com­mence­ment of busi­ness will take place af­ter the cur­rent fi­nan­cial year. Bar­ring un­fore­seen cir­cum­stances, the ac­qui­si­tion is ex­pected to be com­pleted by De­cem­ber 2016.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.