We refer to our announcement made on 30 April 2026 in relation to the Acquisition ("Announcement"). Unless otherwise defined, the definitions set out in this announcement shall carry the same meanings as defined in the Announcement.
Further to the Announcement, the Board wishes to provide the following additional information:
1. Basis of arriving at or determining the total consideration of RM45.50 million
The Purchase Price of RM45.5 million was arrived at based on the Group's internal assessment and submitted as a tender for the acquisition of the subject properties from Nautical Wealth.
In determining the tender price, the Group took into account its subsidiary's prior role as the developer and project manager of the development before the Vendor went into liquidation, which provided in-depth knowledge of the project and enabled the Group to submit an informed and competitive tender.
2. Justification for the total consideration of RM45.50 million
The Purchase Price of RM45.5 million is justified based on the Group's overall assessment of the Properties. The Acquisition comprises 30 units of factories, namely 16 units of 4-storey semi-detached factories, 13 units of single-storey low-cost factories and 1 unit of 4-storey detached factory.
In arriving at the consideration, the Group took into account general factors such as the type and characteristics of the units, their condition, location within the development and prevailing market conditions. Based on these considerations, the Purchase Price was deemed commercially reasonable.
3. Prospects of the Properties to be acquired
The Properties are expected to contribute positively to the Group's future earnings and are currently generating rental income, with potential for long-term value appreciation.
4. The approximate age of the factories located on Property 1, Property 2 and Property 3
All factories were delivered with vacant possession on 2 November 2019. The Certificate of Fitness for Occupation (Form F) under the Uniform Building By-Laws 1986 (Selangor) was subsequently obtained on 26 December 2019. As of 2026, the factories are approximately seven years old.
5. Whether any valuation was carried out on the Properties; if so, the name of the independent registered valuer, date and method of valuation and quantification of the market value
No valuation was carried out on the Properties at the time of signing the Agreements. However, for financing purposes, the financial institution has requested that a valuation be conducted, and a registered valuer has since been appointed accordingly. The valuation report is in the process of being prepared.
6. The net book value of the Properties based on the latest audited financial statements.
Based on the latest available audited financial statements of Nautical Wealth as at 31 December 2019, the net book value of the Properties classified under inventories was RM43,609,795.
This announcement is dated 5 May 2026.