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PETALING JAYA (Aug 18): YBS International Bhd is buying a Penang industrial property occupied by its wholly-owned subsidiary Oriental Fastech Manufacturing Sdn Bhd (OFM) for RM23.5 million cash, as the group seeks to expand capacity amid higher customer demand.
In a Bursa announcement on Monday (Aug 17), YBS International said OFM had entered into a sale and purchase agreement (SPA) with Premium Starhill Sdn Bhd to acquire the property at No. 3078, Lorong Perusahaan 4, Kawasan Perusahaan Perai, 13600 Perai, Penang (Lot 10288, Pajakan Negeri 11311, Mukim 1, Seberang Perai Tengah).
The property comprises an approximately two-acre industrial site and a semidee factory with a built-up area of 59,828 sq ft.
It carries a 60-year leasehold interest expiring on Nov 21, 2032, leaving about six years remaining. The title contains a provision for a further 60-year term, subject to the stipulated requirements, including notice to the state authority and the payment of a new premium and rental to be determined by the authority.
OFM's tenancy runs for 17 months from June 1, 2025 to Oct 31, 2026 at a monthly rent of RM390,600. Under the disclosed arrangements, OFM remains responsible for rental payments up to Oct 31 even if the SPA is completed before the tenancy expires.
The RM23.5 million consideration, equivalent to RM269.93 psf of land area, was arrived at on a willing-buyer, willing-seller basis. It matches the market value assessed by Henry Butcher Malaysia (Penang) Sdn Bhd as at July 31, using the cost approach.
YBS International, which specialises in precision engineering, electronic manufacturing services (EMS) and industrial packaging solutions, said the property is close to its existing plant sites and supply-chain network, which would improve accessibility and management oversight.
The RM2.35 million deposit comprises a RM705,000 real property gains tax retention sum and RM1.645 million paid upon execution of the SPA, with the RM21.15 million balance payable on or before Oct 31.
The acquisition is conditional upon OFM obtaining the relevant consent from the Penang state authority and Penang Development Corporation for the transfer and registration of the property in its favour within three months of the SPA date.
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