QES Group Bhd is expanding its operations in Singapore with the acquisition of two office units worth S$5.47 million (approximately RM17.48 million).
In a filing with Bursa Malaysia, the company announced that QES (Singapore) Pte Ltd, a 70%-owned subsidiary of QES (Asia-Pacific) Sdn Bhd, had signed a sale and purchase agreement with Singapore-based property developer JVA Nir Pte Ltd.
The two freehold units are located at the Space Nova development along New Industrial Road in Singapore. Although classified for clean industrial (B1) use, the units will be used as office spaces to support QES Singapore’s business operations.
The purchase price will be paid in cash through instalments based on construction progress, with vacant possession expected by 30 June 2029.
QES Group plans to finance 90% of the acquisition, or approximately S$4.92 million, through bank borrowings. The remaining 10% will be funded using internally generated funds.
The company has already paid a 5% deposit of approximately S$270,000 on 7 August 2026.
According to QES Group, the acquisition is part of its strategy to support future business expansion in Singapore.
Its existing premises have limited space for daily operations and product demonstrations. The new units will provide additional room for business activities, equipment demonstrations and customer visits.
The acquisition is expected to increase the group’s gearing ratio from 0.31 times at the end of 2025 to 0.39 times.
However, QES Group does not expect the purchase to have a significant impact on its earnings per share for the current financial year.
The company indicated that the transaction is expected to be completed in the third quarter of 2026, while vacant possession of the units is scheduled for 2029.
QES Group specialises in the sale and servicing of scientific instruments, industrial equipment and components. It also provides vision software solutions and engineering consultancy services.
At the close of trading on Tuesday, QES Group shares fell two sen, or 3.4%, to 56.5 sen, giving the company a market capitalisation of approximately RM471.3 million.
The property acquisition is expected to provide QES Singapore with additional space to support its operations and future business growth.
