KUALA LUMPUR: Resintech Bhd signed two significant agreements to strengthen the company’s financial performance and further its strategic expansion into property development.
The company’s wholly-owned subsidiary, Johan Panglima (M) Sdn Bhd (JPSB), signed a share subscription agreement with CNH Group Sdn Bhd (CGSB) and a tenancy agreement with Concepts ATC Sdn Bhd (CASB).
Upon completion of the subscription, Resintech’s shareholding in JPSB will dilute to 55%, while CGSB will hold the remaining 45%.
This capital injection will be used to jointly develop a 4.59-hectare piece of land in Telok Panglima Garang, Selangor, into a mixed-development project.
The project, which is expected to commence in May 2025, has an estimated development cost of RM22.6 million and a gross development value of RM34.1 million.
It will comprise 158 worker hostels, four retail units, a canteen, and various other facilities. Construction is anticipated to be completed within 24 months.
Resintech managing director Datuk Dr Teh Kim Poo said this partnership with CGSB is a strategic step forward for the company as it continues to diversify its business portfolio.
“CGSB brings invaluable expertise in property development, and together, we aim to unlock the full potential of the land acquired by Johan Panglima in 2021,“ he said.
Resintech is a leading market-listed company manufacturing diversified plastic pipes, water tanks, and fittings.
Concurrently, JPSB has signed a tenancy agreement with CASB, a company specialising in labour supply and worker accommodations.
The agreement involves the tenancy of three blocks of buildings, including 158 hostel units and four retail shops.
These facilities will serve as worker accommodations and commercial outlets, and CASB will assume tenancy upon the project’s completion.
The tenancy comes with an initial rental rate of RM255,150 per month for the first three months, increasing to RM348,300 by the third year.
The total rental over the 36 months is estimated at RM12.09 million.
There is also a provision for a further three-year renewal, subject to a mutually agreed rental increment of no more than 10%.
“The tenancy agreement with CASB is a critical component of the project’s success,“ Teh noted.
“By securing a long-term tenant even before construction begins, we ensure that JPSB will have a reliable and steady income stream immediately upon project completion.
“The rental income will cover the operational costs and strengthen our financial stability in the long term,“ he said.
