Sapura Industrial Bhd is disposing of a 2.163-hectare parcel of vacant leasehold land in Ayer Keroh, Melaka, to Loongsen Plastics (M) Sdn Bhd for RM10.48 million as part of its efforts to unlock value from non-core assets and strengthen its financial position.
In a filing with Bursa Malaysia, the automotive components manufacturer said the property carries a 99-year leasehold tenure that is set to expire on Oct 22, 2073. The land is currently occupied by a tenant and generates a monthly rental income of RM2,940.
According to the company, the disposal presents an opportunity to realise the capital appreciation of the asset after holding it for approximately 25 years.
Sapura Industrial noted that the land was originally acquired to support the expansion of its manufacturing operations in Melaka. However, changing business requirements and evolving operational priorities have prompted the group to reassess the strategic value of the property within its portfolio.
The board said that while the site had been earmarked for future expansion, the company is now focusing on growth opportunities in locations that are closer to its existing customers and those of its subsidiaries. This shift is expected to enhance operational efficiency, improve logistics management and better support customer demand.
“Having held the asset as an investment for 25 years and having considered the need for expansion of plant facilities in other areas that are in closer proximity to the company’s or its subsidiaries’ customers, the board believes that the proposed disposal is timely,” the company said.
Sapura Industrial added that the transaction will enable the group to unlock the value embedded in the property and convert it into liquid funds that can be redeployed towards more productive uses.
The proceeds from the disposal are expected to support the group’s operational requirements, strengthen its cash position and provide additional flexibility to pursue future expansion and investment opportunities aligned with its long-term business strategy.
The company said the disposal reflects its ongoing efforts to optimise asset utilisation and focus resources on areas that offer stronger strategic and operational benefits, while continuing to support its growth ambitions in the automotive and industrial sectors.
