KUALA LUMPUR (June 16): Health and wellness products retailer Beshom Holdings Bhd (KL:BESHOM) said it is disposing of 14.58 acres of freehold industrial land in Klang for RM85.8 million cash.

The sale, conducted via its wholly-owned subsidiary Hai-O Enterprise Bhd, is expected to generate a net gain of RM52.8 million and provide funds for expansion and operational needs, said Beshom in a bourse filing on Tuesday.

The buyer is a construction firm, JT Development Sdn Bhd, owned by its sole director Tan Chee Chuan.

Beshom said the land, located on Jalan Kapar opposite the North Klang Straits Bypass toll plaza, has access to major transport links including the West Coast Expressway, with nearby industrial developments such as the Bukit Raja Industrial Park and Kapar Bestari Industrial Park.

The disposal price, it said, matches the market value determined by an independent valuer. The proceeds would be channelled towards acquiring a new warehouse, constructing a replacement Tenaga Nasional Bhd (KL:TENAGA) substation, refurbishing existing properties and supporting working capital requirements.

Beshom said RM28 million will be used to acquire the warehouse. Another RM45.84 million is earmarked for working capital, including retail outlet expansion and refurbishment, product development, supply chain initiatives, member development programmes and digital system upgrades.

The transaction stems from land that was previously part of a larger 29.73-acre industrial parcel that was subdivided in 2024.

As part of the deal, Beshom will construct a new TNB substation on the adjacent land it owns, as electricity for the neighbouring property is currently supplied through infrastructure located on the disposal site.

Shares of Beshom closed 3.5 sen or 5.9% higher at 62.5 sen on Tuesday, valuing the group at RM187.6 million.