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- The properties comprise a vacant 1.35-hectare light industrial parcel and a 0.89-hectare plot with a detached workshop and office. Both parcels are located in Kampung Kangkar Tebrau.
KUALA LUMPUR (Sept 23): Chin Hin Group Property Bhd (KL:CHGP) is disposing of two freehold industrial plots in Johor Bahru for RM19.3 million cash to Miroad Rubber Industries Sdn Bhd.
The properties comprise a vacant 1.35-hectare light industrial parcel and a 0.89-hectare plot with a detached workshop and office. Both parcels are located in Kampung Kangkar Tebrau.
In a filing with Bursa Malaysia, Chin Hin said the disposal price was determined after negotiations to reflect the land’s condition, which is affected by the presence of a high-voltage pylon and Tenaga Nasional Bhd’s (KL:TENAGA) right-of-way.
Although the disposal price is below the combined market valuation of RM28.8 million as at February 2025, Chin Hin said the sale is reasonable given the constraints.
In addition, the transaction still represents a significant gain over the company’s original purchase price of RM6.76 million in 2012.
Proceeds from the sale will be allocated towards repayment of bank borrowings (RM10 million), working capital (RM7.62 million), real property gains tax (RM1.21 million) and estimated disposal expenses (RM477,000).
Barring unforeseen circumstances, the disposal is expected to be completed by June next year.
Shares in Chin Hin closed unchanged at RM1.22 on Tuesday, giving the group a market capitalisation of RM1.61 billion.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
