BINASAT Communications Bhd is diversifying into the property sector with plans to acquire commercial properties and enter property development.

In an exchange filing today, the group said it has signed agreements to acquire three properties in Sazean Business Park, Klang, valued at RM8.67 million, which will be leased to tenants such as Hextar Asset Management Sdn Bhd.

The long-term leases are expected to provide a steady income stream, helping reduce Binasat’s reliance on its core telecommunications and construction businesses.

Additionally, Binasat is acquiring Empire City Properties in Damansara Perdana, a development expected to appreciate in value upon completion in 2026.

These moves are part of Binasat’s strategy to expand into property development and management, including investments in Real Estate Investment Trusts (REITs).

The group aims to create stable revenue sources as it seeks to mitigate financial challenges, including a RM12.48 million loss in its recent financial period.

Funding for these acquisitions will be raised through a private placement, internal funds, and potential bank borrowings.

Binasat plans to continue its core operations while growing its property investments, which are expected to contribute significantly to the group’s future profits and net assets. — TMR

Source: The Malaysian Reserve, 4 December 2024