14 minutes
PETALING JAYA: Integrated property developer OCR Group Bhd has proposed its first venture into industrial development through the acquisition of a 50% stake in OCR Selayang Industrial Park Sdn Bhd for RM14.1 million, to be satisfied by the issuance of 105 million shares.
OCR Selayang holds three pieces of freehold industrial lands totalling nearly 600,000 sq ft in Selayang, Selangor, of which two pieces will be subdivided into five saleable industrial detached plots. The group’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.
As at to-date, OCR Selayang had entered into conditional sale and purchase agreements for all five plots of lands with total sales of RM139.1 million. OCR Selayang is expected to materially improve OCR’s financial performance in the next 12 months.
OCR managing director Billy Ong Kah Hoe said this first industrial land acquisition effectively diversifies 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. These land are located within immediate vicinity of industrial properties in Selayang including factories and commercial shop-offices, as well as residential developments. In fact, the sales in hand for these land indicate the high attraction rate for buyers, in light of the potential workforce and nearby amenities.”
The proposed acquisition is subject to approvals from Bursa Malaysia Securities Bhd, the non-interested shareholders of OCR at an EGM to be convened, and other relevant authorities.
The proposed acquisition is expected to be completed in the first quarter of 2022, subject to relevant approvals and barring unforeseen circumstances, upon which OCR Selayang will become a subsidiary of OCR.
OCR, helmed by Billy and substantially owned by the Ong family, has over 20 years of experience in property development and construction industries.
