A1 AK Koh Group Bhd plans to acquire a one-acre parcel of land in Puchong Jaya for RM16.73 million in cash to develop a new regional sales and marketing office for central Peninsular Malaysia.
In a filing with Bursa Malaysia on Monday, the company said its wholly owned subsidiary, AK Koh Enterprise Sdn Bhd, is purchasing the leasehold land from Qualitypack Properties Sdn Bhd.
The site already has development approval for a commercial complex and is planned for a five-storey building with an estimated gross floor area of about 29,000 sq ft.
A1 AK Koh said the acquisition is in line with its need for larger and more suitable premises as its operations and workforce in the central region have expanded in recent years.
The purchase price was agreed on a willing buyer-willing seller basis after considering an independent market valuation of RM16.5 million conducted by Laurelcap Sdn Bhd on April 9.
The company said the land purchase will be funded through a combination of bank borrowings and internally generated funds. It also expects to spend around RM8.5 million on construction costs for the proposed building, although the final development cost has yet to be confirmed.
While the exercise is not expected to have a material impact on earnings for the financial year ending June 30, 2026, the group noted that borrowings and development costs may affect short-term profitability. However, it expects the project to contribute positively once operational.
Shares of A1 AK Koh closed unchanged at 17 sen on Monday, giving the group a market capitalisation of RM142.6 million.
