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PETALING JAYA (April 20): A1 A.K. Koh Group Bhd's wholly-owned subsidiary A.K. Koh Enterprise Sdn Bhd (AKK Enterprise) has entered into a sale and purchase agreement (SPA) to acquire a parcel of 99-year leasehold land in Pekan Puchong Jaya, Daerah Petaling, Selangor for RM16,728,740, to be satisfied entirely in cash.
The land, measuring approximately 1.01 acres (about 44,023 sq ft) and held under title HSD 243851, PT 976, is currently vacant and zoned for commercial use (Bangunan Perniagaan). The SPA was entered into with the vendor, Qualitypack Properties Sdn Bhd, on April 20, 2026.
The land carries a leasehold tenure of 99 years expiring on June 24, 2101, with a remaining unexpired term of approximately 75 years.
It is situated along Jalan Puchong Batu 7½, approximately 18km south-west of the Petronas Twin Towers, 7km south-east of Petaling Jaya and 5km north-east of Pusat Bandar Puchong.
The surrounding area comprises a mix of commercial, industrial and residential developments, with nearby landmarks including Kompleks Suria Kinrara, Taman Perindustrian Kinrara, BK 5 LRT Station and Bloomsvale Shopping Mall.
The land was independently valued by Laurelcap Sdn Bhd at RM16,500,000 as at April 9, 2026, using the comparison approach.
The purchase consideration of RM16,728,740 represents a premium of approximately RM228,740 or 1.4% above the appraised market value.
In a filing with Bursa Malaysia, A1 stated it intends to develop the land into a five-storey commercial building with an estimated gross floor area of approximately 29,000 sq ft, to serve as the group's new regional sales and marketing office for the central region.
The company currently operates from a rented office in Taman Perindustrian OUG, Kuala Lumpur.
Construction is expected to commence in the third quarter of 2027, with an estimated development cost of approximately RM8.5 million and a build duration of up to two years.
The development plan will replace an earlier approval — originally for a petrol station in 2003, later superseded by a Majlis Bandaraya Subang Jaya (MBSJ) development plan approval dated July 8, 2025 for a commercial complex.
A building plan approval (Kelulusan Pelan Bangunan) was also obtained from MBSJ on Dec 22, 2025, expiring Dec 21, 2026.
The company said it will submit a new application to MBSJ as it does not intend to adopt the layout under the existing approvals, and the approval process is estimated to take at least nine to 12 months post-completion of the acquisition.
The purchase consideration will be funded via a combination of bank borrowings and internally generated funds.
Assuming 90% is financed via bank borrowings of RM15.06 million, the group's gearing ratio is estimated to increase from 0.36 times to 0.60 times on a pro forma basis.
The proposed acquisition is subject to shareholder approval at an extraordinary general meeting (EGM) to be convened, state authority consent for the transfer of the land, and state authority consent for the creation of a legal charge.
The conditions precedent must be fulfilled within six months from the date of the SPA. The acquisition is expected to be completed by the fourth quarter of 2026.
Should shareholder approval not be obtained after the state's consent to transfer has been secured, a sum of RM1,003,724.40 — equivalent to 6% of the purchase consideration — will be forfeited to the vendor.
A1 was listed on the ACE Market of Bursa Malaysia Securities on July 11, 2025.
The highest percentage ratio applicable to the proposed acquisition under ACE Market Listing Requirements is 43.67%, calculated based on the purchase consideration against the group's audited net assets for the financial year ended June 30, 2025. RHB Investment Bank Bhd has been appointed as principal adviser for the transaction.
None of A1's directors, major shareholders or persons connected with them has any direct or indirect interest in the proposed acquisition.
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