SINGAPORE (Sept 6): Singaporean MeGroup’s Malaysian subsidiary Menang Nusantara Sdn Bhd (MNSB) has acquired a property at Lot 16, Jalan 3, Kawasan Perusahaan Cheras Jaya at Balakong, Selangor for RM16.2 million (S$4.7 million).

A sale and purchase agreement (SPA) was entered into between MNSB and the vendor, Ngai Ming Plastic Industries (M) Sdn Bhd, on Wednesday.

The 99-year leasehold property is on industrial land that measures some 4,868 square metres (sq m). The lease will expire on Dec 30, 2098. The buildings on the property include a single storey detached factory with a three-storey office annexed with an estimated built-up area of approximately 3,700 sq m.

Based on the property’s built-up area, the consideration values the property at RM4,378 per sq m. The group did not commission a valuation on the property.

In connection with the entry into the SPA, MNSB has entered into a tenancy agreement with Ngai Ming Plastic Industries, under which MNSB will be granted a tenancy of the property for a period of one year at a rental of RM80,000 per month. The tenancy will end upon completion of the acquisition of the property, following which MNSB will be the property’s legal and beneficial owner.

MeGroup says it intends to expand its existing manufacturing facilities at the property. It also intends to relocate some of its management, sales, finance and human resource operations that are currently located at its main manufacturing plant at Balakong, to the new premises.