GRSB to redevelop land in Seberang Perai

PETALING JAYA (Sept 10): GUH Realty Sdn Bhd (GRSB), a unit from GUH Holdings Bhd  has entered into a sale and purchase agreement (SPA) with Leader Holdings and vendor Thow Gooi Chee to acquire the land measuring 4.9ha in Ladang Valdor, Seberang Perai Selatan, Penang, for RM22.6 million, the digitalEDGE Daily reported today.

The land is slated for a light industrial park and is a part of GUH Holdings' plan to cultivate future earnings growth in its property division, it said in a filing with Bursa Malaysia. 

It said the land parcels, one measuring 2.61ha at RM12.08 million and the other 2.27ha at RM10.5 million, are strategically located in the southern Penang district, which has seen the initiation of several government economic programmes such as the Batu Kawan Industrial Park development.

GUH Holdings is positive there would be growing demand for light industrial factories from small and medium suppliers who would want to be located close to their customers.

“The proposed acquisitions are in line with the ongoing plan of the GUH group to increase and diversify its property landbank in strategic locations with high development value,” the group said.

Meanwhile, there is an estimation of a six-month completion time frame for the proposed acquisition from the date of the SPA and fundings of the land purchase is either through bank borrowings and/or internally generated funds, the group noted.

The group reassured that the proposed acquisitions would not have any material impact on the earnings in the group’s financial year ending Dec 31, 2015, but is expected to contribute positively to future earnings and earnings per share.

Among some of GUH Holdings activities include the manufacture and sale of hybrid printed circuit boards, project management and construction of waste water and water treatment plants, property development, and trading in electrical goods and appliances.