KUALA LUMPUR (March 26): Ewein Bhd is acquiring a vacant piece of industrial land in Butterworth for RM25.84 million to develop a workers’ dormitory in a related party transaction.

The property developer and precision sheet metal fabrication manufacturer said the move is in line with the group's intention to diversify into the provision of workers’ dormitory accommodation and manpower management related services.  

The foray into workforce management services may contribute 25% or more of its net profits, the group said in a bourse filing, adding that the move will also result in a diversion of more than 25% of the group's net assets moving forward.  

Ewein said the land, measuring 16,004 square metres, will be used to develop a block of 16-storey workers’ dormitory.

This serves as an entry point for the group to undertake its maiden project to venture into the workforce management services sector with a new source of income, the group said.

Ewein said its indirect subsidiary Delight Island Sdn Bhd (DISB) is buying the land from Magnum Heritage Sdn Bhd (MHSB).

DISB was previously owned by MHSB's shareholders HS Land & Property Sdn Bhd, Ooi Eng Leong, Poly FHY Properties Sdn Bhd and Tah Wah Group Sdn Bhd. However, it was acquired by Ewein Land Sdn Bhd for RM100,000 in November 2023.

Ooi is a major shareholder in both Ewein and MHSB, holding a 44.72% stake in Ewein and 23% in MHSB.

Ewein said the land acquisition, which is expected to be completed by the second half of 2024, will be satisfied via internal funds and bank borrowings.

Ewein’s share price closed up one sen or 0.9% at RM1.07 on Tuesday, giving the group a market capitalisation of RM323 million.