KUALA LUMPUR (Dec 30): Apex Equity Holdings Bhd (KL:APEX), which is involved in stockbroking, property development and money lending services, said on Monday it is buying a boutique office building in Bangsar South, Kuala Lumpur for RM50 million.

In an exchange filing, Apex said its wholly owned unit Apex Development Sdn Bhd has entered into a sale and purchase agreement with Noah Foundation for the acquisition of the building, measuring approximately 54,876 sq ft, for RM911.15 per sq ft.

The building, which is currently vacant, will serve as the office for Apex Group and its subsidiaries, the company said. Any remaining unoccupied floors will be made available for lease, it added.

Apex said its current place of business is occupied under a lease agreement that will expire in the second quarter of 2026, requiring a decision on relocation or renewal. The company’s current office is located in Mutiara Damansara, Petaling Jaya, Selangor.

“The proposed acquisition provides an opportunity for the company to enhance the company’s operational stability, reap potential capital appreciation of the property in the long run and promote the company’s growth plan,” it said.

“Establishing a permanent headquarters in a prestigious business hub strengthens Apex Group’s brand visibility and stakeholder confidence,” it added.

The acquisition, which is slated to be completed after the company’s financial year ending 2025, will be 80% funded (RM40 million) by bank borrowings and 20% (RM10 million) via internally generated funds.

As at end-September, Apex had cash and bank balances of RM26.25 million, while its short-term borrowings stood at RM42.05 million, according to the Main Market-listed company’s recent financial statement.

At noon break, shares of Apex were half a sen or 0.54% higher at 92.5 sen, valuing the group at RM197.55 million.

Source: EdgeProp, 2 Jan 2025