PTT Synergy Group Bhd is buying four industrial properties in Bandar Bukit Raja, Klang, for RM31.99 million, and Rummah News' view is that the small deal says something useful about where owner-occupiers still want control: factory land close to the Klang industrial belt.
The group is acquiring the freehold properties from Sime Darby Property (Bukit Raja) Sdn Bhd, a wholly owned subsidiary of Sime Darby Property Bhd, according to reports citing PTT Synergy's Bursa filing. The Edge Malaysia reported the combined land area at 8,778 sq m, or about 94,486 sq ft.
That puts the land-area price at about RM338.57 psf, using RM31,990,000 divided by 94,486 sq ft. The Star reported that each parcel has a detached factory already built or to be built, with an approximate built-up area of 8,414 sq ft each.
The transaction is not large by listed-developer standards. Its usefulness is in the buyer's reason. PTT Synergy said the proposed acquisition is for its business operations and to accommodate expansion. It is not a landbank headline dressed up as strategy; it is an industrial operator putting money into premises it can use.
Funding will come through bank borrowings, and completion is expected within 36 months from the sale and purchase agreements, according to NST's report. The Edge Malaysia also noted that this is PTT Synergy's second land acquisition in September, after a RM62.53 million purchase of freehold land in Seberang Perai Selatan, Penang.
There is a limit to what this deal can tell the market. It does not prove that Klang industrial prices are moving one way or another, and it should not be stretched into a forecast. What it does show is that listed industrial players are still prepared to buy functional factory space when the location, tenure and expansion use line up.
Sources: The Edge Malaysia, The Star, New Straits Times.
