Poh Huat to buy warehouse-cum-office showroom in Australia

PETALING JAYA: Furniture producer Poh Huat Resources Holdings Bhd is acquiring a detached warehouse cum offices showroom in Cranbourne West, Victoria, Australia with JSNJ Investment Pty Ltd, Australia for A$4.94 million (RM14.84 million).

The project developed and owned by JSNJ Investment comprises of a 2,912 sqm single storey high clear span warehouse with a 300 sqm office with retail/showroom facilities at the front of the property.

It is situated on a 5,214 sqm parcel of subdivided commercial land at Lot 41, No.17, Whitfield Boulevard, Cranbourne West, Victoria 3977, Australia.

Poh Huat is also negotiating to lease the first warehouse to one of its existing customers for a net lease payment of between A$320,000-340,000, (RM10.66 -11.32 million) which will give it a net yield of 7.58% against our original costs of investment or 6.4-6.8% based on a a potential market value of about A$5 million (RM16.65 million).

“The group intends to hold the subject property as investment property for rental to third parties. The board is of the view that the subject property has good potential in terms of capital appreciation and rental yield given the demographic and commercial potential of the Cranbourne area,” said its board of directors.

Prices of properties (all categories) in Cranbourne have registered double-digit growth over the last five years and the strong population growth is leading to a significant requirement for employment land (land for industrial, retail and commercial/office use) across all industries and skill sets. According to the local draft precinct structure plan, Cranbourne West has been identified as an important area for providing local employment opportunities for residents in the Cranbourne area,” it added.

Poh Huat plans to raise the funds for the acquisition internally. The stock fell 0.77% to RM1.29 with 59,800 shares done.