OCR ventures into first industrial development for RM14.1 million

KUCHING: Integrated property developer OCR Group Bhd (OCR) proposed its first venture into industrial development through the acquisition of a 50 per cent equity interest in OCR Selayang for approximately RM14.1 million, to be satisfied by the issuance of 105 million consideration shares.

OCR Selayang holds three pieces of freehold industrial lands totalling nearly 600,000 square feet in Selayang, Selangor, of which two pieces will be subdivided into five saleable industrial detached plots.

The group’s role includes the construction and establishment of key infrastructure in the industrial park such as roads, drainage, sewerage systems as well as other common facilities to enhance the lands’ readiness for buyers.

As at to-date, OCR Selayang had entered into conditional sale and purchase agreements for all five plots of lands, with total sales of RM139.1 million. OCR Selayang is expected to materially improve OCR’s financial performance in the next 12 months.

“This first industrial land acquisition effectively diversifies our portfolio, which currently consists of residential properties across affordable, mid-range and high-end offerings,” OCR managing director Billy Ong Kah Hoe said.

“Moreover, the exercise will immediately be earnings-accretive for the group, complementing the new sales and billings from existing projects that will be delivered across Klang Valley and Pahang in financial year 2022 (FY22).

“These lands are located within immediate vicinity of industrial properties in Selayang including factories and commercial shopoffices, as well as residential developments.

“In fact, the sales in hand for these lands indicate the high attraction rate for buyers, in light of the potential workforce and nearby amenities.”

The lands are located within Kawasan Perindustrian Taman Selayang Baru, approximately 12km northwest of the Kuala Lumpur city centre, with high accessibility via Jalan Tun Razak and Jalan Kuching.

Notable landmarks and community facilities include Majlis Perbandaran Selayang Pasar Borong and Selayang Mall, Universiti Teknologi MARA (UiTM) Fakulti Perubatan Kampus Selayang and Hospital Selayang.

The proposed acquisition is subject to approvals from Bursa Malaysia Securities Bhd, the noninterested shareholders of OCR at an extraordinary general meeting to be convened, and other relevant authorities.

The proposed acquisition is expected to be completed in the first quarter of 2022, subject to relevant approvals and barring unforeseen circumstances, upon which OCR Selayang will become a subsidiary of OCR.

OCR, helmed by Billy and substantially owned by the Ong family, has over 20 years of experience in property development and construction industries.