KUALA LUMPUR (Sept 8): QES Group Bhd (KL:QES) said a unit of its subsidiary QES (Asia-Pacific) Sdn Bhd has entered into a sales and purchase agreement to acquire two office units in Singapore for a total of S$5.47 million (RM17.48 million) cash.

QES (Singapore) Pte Ltd — 70%-owned by QES Asia-Pacific — entered into a sale and purchase agreement with Singapore-based property developer JVA Nir Pte Ltd, according to a filing on Bursa Malaysia.

The freehold units are located at the Space Nova development on New Industrial Road and are categorised for clean industrial (B1) use, with QES Singapore intending to use the units as office spaces.

QES Group said the purchase price will be settled in cash via instalments tied to construction milestones, with vacant possession due by June 30, 2029.

It added that 90% of the consideration, which is about S$4.92 million, will be funded through bank borrowings, with the remainder via internally generated funds. QES Group said about S$0.27 million, representing a 5% deposit, was paid on Aug 7.

The acquisition is expected to lift the group’s gearing to 0.39 times from 0.31 times as at end-2025, while having no material impact on earnings per share for the current financial year.

QES Group said the purchase will support QES Singapore’s expected business expansion, as its current premises have limited operating and demonstration space. The acquisition will provide additional space to accommodate future growth and customer visits.

The deal is expected to be completed in the third quarter of 2026.

QES Group mainly sells and services scientific instruments, industrial equipment and parts, while also providing vision software and engineering consultancy services.

At market close on Tuesday, shares of QES Group were down by two sen or 3.4% to 56.5 sen. At its last price, the group was valued at RM471.3 million.