KUALA LUMPUR: Property developer OCR Group Bhd has proposed its first venture into industrial development through the acquisition of a 50 per cent stake in OCR Selayang for RM14.1 million.
The acquisition would be paid by the issuance of 105.0 million shares, OCR said yesterday.
OCR Selayang holds three pieces of freehold industrial lands totalling nearly 600,000 square feet in Selayang, Selangor, of which two pieces will be subdivided into five saleable industrial detached plots.
OCR's role includes the construction and establishment of key infrastructure in the industrial park such as roads, drainage, sewerage systems as well as other common facilities to enhance the lands' readiness for buyers.
OCR Selayang had entered into conditional sale and purchase agreements for all five plots of lands, with total sales of RM139.1 million.
OCR managing director Billy Ong Kah Hoe said the acquisition diversified its portfolio, which currently consists of residential properties across affordable, mid-range and high-end offerings.
"Moreover, the exercise will immediately be earnings-accretive for the group, complementing the new sales and billings from existing projects that will be delivered across Klang Valley and Pahang in FY2022."
The lands are located within Kawasan Perindustrian Taman Selayang Baru, about 12km northwest of the Kuala Lumpur city centre.
The acquisition is subject to approvals from Bursa Malaysia, OCR's non-interested shareholders at an extraordinary general meeting to be convened, and other relevant authorities.
It is expected to be completed in the first quarter of 2022.