KUALA LUMPUR (June 3): Chin Hin Group Property Bhd (KL:CHGP) has entered into a deal to acquire an industrial property in Kota Damansara for RM92.5 million cash and plans to turn the site into a logistics warehouse hub.

The leasehold property located within the Selangor Science Park 1 comprises a warehouse and factory building with a two-storey office and dormitory building situated on 21,578 sq m of land, CHGP said in a bourse filing on Wednesday.

It added that the proposed warehouse hub would comprise 322 units with built-up sizes ranging from 1,800 to 3,200 sq ft, with an estimated gross development value of RM612 million.

The gross development cost is estimated at RM480 million, with construction scheduled to be completed by the end of 2030.

CHGP said the vendor of the property is Simm Ventures Sdn Bhd, a company engaged in real estate activities and owned equally by Sim Heok Hoo and Wong Ley Beng.

The proposed land acquisition will be funded through a combination of internally generated funds and bank borrowings, with the final funding mix to be determined later, said CHGP.

The acquisition is expected to be completed by the fourth quarter of 2026, subject to state consent for the transfer and charge of the land, the group said.

Ahead of the announcement, shares of CHGP closed down two sen or 1.9% at RM1.05, giving a market value of RM1.46 billion.