KUALA LUMPUR (April 20): A1 AK Koh Group Bhd (KL:A1AKK) said it plans to acquire a one-acre land in Puchong Jaya for RM16.73 million cash to develop its new regional sales and marketing office for central Peninsular Malaysia.

In a bourse filing on Monday, the group said its wholly-owned unit AK Koh Enterprise Sdn Bhd is purchasing the leasehold land from Qualitypack Properties Sdn Bhd.

The land comes with development approvals for a commercial complex and is earmarked for the construction of a five-storey building with an estimated gross floor area of about 29,000 square feet.

The group said the acquisition aligns with its needs for larger and more suitable premises as its operations and workforce in the central region have expanded in recent years.

The purchase price was arrived at on a willing buyer-willing seller basis, taking into account an independent market valuation of RM16.5 million by Laurelcap Sdn Bhd as at April 9.

Funding for the land will derive from bank borrowings and internally generated funds, says the group. It added that it expects to incur about RM8.5 million in development costs for the planned building, although the final gross development cost has yet to be determined.

While the exercise is not expected to have a material impact on earnings for the financial year ending June 30, 2026, A1 AK Koh said that borrowings and development costs could weigh on earnings in the near term. However, it added that earnings are expected to contribute positively in the future once the project is operational.

Shares of A1 AK Koh closed unchanged at 17 sen on Monday, valuing the group at RM142.6 million.