PETALING JAYA: Greatech Technology Bhd has entered into a sale and purchase agreement with Penang Development Corp for the acquisition of a piece of vacant leasehold land in Batu Kawan, Penang, for a cash consideration of RM13.37 million via its wholly owned subsidiary, Greatech Integration (M) Sdn Bhd.
According to the group’s Bursa filing, the land is subject to a use category of “manufacture of industrial automation systems and equipment” and other such conditions and restrictions as may be imposed by the state authority.
Greatech said the purchase consideration of RM13.37 million for the land is based on a price of RM52 per square feet and on an “as is where is basis”, after taking into consideration its strategic location.
It highlighted that the price was fixed by the state agency and it did not carry out any valuation on the land.
Greatech disclosed that the acquisition is for the construction of an operational facility as the subsidiary’s manufacturing operations in Lunas, Kedah, are on rented premises, and it intends to relocate to the new facility.
The group said it is a strategic move as the land is in close proximity to its head office in Bayan Lepas as well as its assembly plant in Batu Kawan. In addition, the move will save it about RM323,000 in annual rental commitments.
Greatech anticipated the construction of the new facility to start by the end of the first quarter of this year subject to the approval of the relevant authorities, while construction is expected to be completed by the end of 2021.
It said the acquisition will be satisfied with internally generated funds.