Revenue Group Bhd plans to set up offices and warehouses in Kuala Lumpur which will enable it to consolidate its operations under one roof to improve operational efficiency and expand in the e-commerce sector.
The group currently operates from six locations in Klang Valley, with its headquarters located at Kepong Business Park, Kuala Lumpur. It is renting four offices and one warehouse/storage space.
Next Revenue Sdn Bhd, a wholly-owned subsidiary of Revenue Harvest Sdn Bhd, which in turn is an indirect wholly-owned subsidiary of Revenue, had on August 16, 2021, entered into two conditional sales and purchase agreements (SPA) with Starplus Corp Sdn Bhd.
The first SPA is for the proposed acquisition of two plots of leasehold lands (Land 1) in Kuala Lumpur for RM24.50 million cash. The second SPA is also to acquire two parcels of leasehold land (Land 2) in Kuala Lumpur for RM19.50 million cash, Revenue said in a filing with Bursa Malaysia yesterday.
Revenue said the proposed acquisition represents an opportunity for the group to acquire strategic properties.
Land 1 and Land 2 have a combined land area of about 8,899 square metres and a combined gross floor area of about 5,234.53 square metres.
Revenue said the large land area and gross floor area will not only provide enough space for the group's current operations but also its future expansion.
It said subject to the relevant authorities' approval, it intends to convert Land 1 into a mixture of offices and industrial properties for the e-commerce eco-systems, such as storage and warehouse facilities, logistics hub, offices, and operation hubs for small and medium enterprises (SMEs) and micro SMEs.
For Land 2, the group intends to convert it into a similar concept and structure as part of the future expansion.
Revenue believes that its prospects and plans in the e-commerce industry will remain favourable.
According to the outlook of the e-commerce industry in Malaysia, the market had tripled in size since 2015 by exceeding US$3 billion in 2019 and is projected to reach US$11 billion in 2025.
Malaysia also remains an attractive market for e-commerce in Southeast Asia, Revenue said.