KUALA LUMPUR (Nov 8): UWC Bhd said its unit is buying a plot of leasehold land measuring 12.0877 acres (about 4.89ha) in the strategic industrial park known as Batu Kawan Industrial Park, Penang for RM28.96 million to support its business growth.

In a bourse filing, UWC said its subsidiary UWC Industrial Sdn Bhd had entered into a sale and purchase agreement on Nov 8 with the Penang Development Corp for the proposed acquisition, which works out to RM55 per sq ft, which UWC intends to finance using internal funds.

The land forms part of a leasehold plot measuring 19.7603ha in the industrial park. This master land is registered in the name of Buildcast Sdn Bhd.

UWC said the exercise is a strategic move for the group and its subsidiaries, as the land is located within the Batu Kawan Industrial Park, where the UWC group is situated. “This would ease accessibility and management oversight of the expansion of the group’s business and operational activities," it said.

“In view of the anticipated growth, strategically located space is vital for efficient manufacturing services in proximity to key customers both locally and logistic arrangements for shipment to overseas customers. Therefore, the board expects the proposed land acquisition to augment the group’s property portfolio to support its business and operations and activities,” it added.

Shares of UWC fell 10 sen or 1.61% to close at RM6.10 on Monday, with a market value of RM6.71 billion. Year-to-date, the stock has risen by 24.49% from RM4.90.