KUALA LUMPUR (May 17): Loss-making tiles, construction and property development outfit Seacera Group Bhd is acquiring a piece of land in Melaka with a warehouse erected on it for RM16.90 million.
It is buying the property through its wholly-owned unit Seacera Ceramics Sdn Bhd from QM Sports Sdn Bhd, a private apparel manufacturing firm controlled by Datuk Liow Yit Lee and Goh Tin Guat.
In a filing with Bursa Malaysia, Seacera said it plans to pay RM4.50 million in cash and the balance purchase consideration of RM12.4 million via the issue of 8.86 million shares at RM1.40 apiece.
At RM16.9 million, Seacera is purchasing the land — measuring 169,402 sq ft — at RM99.76 per sq ft. The 27-year-old warehouse has a build-up area of 104,014 sq ft.
As at end-2015, the 99-year old leasehold land, expiring in 2074, has an audited net book value of RM5.86 million.
Seacera said the property will serve as its warehouse and distribution hub for the southern region.
Seacera is currently also constructing a new manufacturing and warehousing facility for its tiles division in Kamunting, Perak, which would increase its current manufacturing capacity from 6,000 sq m, to up to 12,000 sq m per day.
“The proposed warehouse acquisition is not expected to have any material effect on the consolidated earnings of Seacera for the financial year ending Dec 31, 2017,” the company said.
Seacera expects to complete the proposed warehouse acquisition in the third quarter of this year.
Shares of the Main Market-listed Seacera closed one sen or 0.64% lower at RM1.56 today, giving it a market capitalisation of RM380.27 million.