KUALA LUMPUR (Oct 30): Mi Technovation Bhd (KL:MI) is acquiring a seven-storey light industrial building in Singapore for S$103.88 million (RM331.8 million) to establish a global operational hub and support the expansion of its vehicle technologies business.
In a filing with Bursa Malaysia on Friday, the semiconductor equipment maker said its wholly owned subsidiary Ohima International Pte Ltd had on Friday entered into a conditional sale and purchase agreement with Kim Hup Lee & Co (Private) Ltd for the acquisition of KHL building, located along New Industrial Road.
The property has a gross floor area of 111,389 sq ft and is currently vacant. Mi Technovation plans to turn it into a centralised operational hub housing a data and computing centre, a digital twin and artificial intelligence (AI) centre, as well as product strategy, global sales and marketing, finance, legal and customer experience functions.
The acquisition is intended to accommodate the expansion of the group's vehicle technologies business unit (VTBU), which currently operates from a leased headquarters in Queenstown with a built-up area of about 568 sq m.
The acquisition will be financed through a combination of bank borrowings, proceeds from the listing of Mi Material Holding Ltd on the Singapore Exchange’s Mainboard on Oct 28, which raised S$203.2 million, and/or internally generated funds.
The group said owning the property would give it greater control and flexibility over its premises, while reducing exposure to lease renewal uncertainties and potential rental increases.
VTBU will continue operating from its existing Queenstown headquarters until its tenancy expires on Nov 30, 2028, before relocating to the new property. The move is expected to generate annual rental savings of about S$330,000, equivalent to RM1.05 million.
Mi Technovation said the acquisition would also strengthen the group's long-term growth prospects, while providing potential capital appreciation from ownership of the property.
The acquisition is expected to be completed in the first quarter of 2027.
Mi Technovation shares closed 33 sen or 4.81% lower at RM6.53 on Friday, valuing the group at RM5.88 billion. The stock has gained 134.89% so far this year.