Poh Huat acquiring warehouse in Australia
> Part of group’s plan to expand beyond Malaysia, Vietnam and South Africa
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.