GUH Holdings Bhd is buying land to develop a light industrial park in Seberang Perai — a plan to cultivate future earnings growth in its property division.

In a filing with Bursa Malaysia, GUH Holdings said its unit GUH Realty Sdn Bhd entered into a sale and purchase agreement (SPA) with Leader Holdings and vendor Thow Gooi Chee to acquire the pieces of land measuring 4.9ha in Ladang Valdor, Seberang Perai Selatan, Penang, for RM22.6 million.

It said the lands, 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 believes there would be a growing demand for light industrial factories from small and medium size 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 land bank in strategic locations with high development value.

“The subsequent proposed development of a light industrial park is part of the GUH group’s continuous effort to increase and sustain its earnings growth in the property development segment,” it said.

It estimated that the proposed acquisition would be completed in six months.

Source: TheEdgeMarkets.com