KUALA LUMPUR (March 12): Building material wholesaler and distributor Unitrade Industries Bhd has acquired a two-acre land worth RM7.84 million to develop centralised labour quarter (CLQ) solutions located in Sungai Buloh, Selangor.
In a filing with Bursa Malaysia on Tuesday, Unitrade said its wholly owned subsidiary Perfect CLQ Sdn Bhd had entered into a sales and purchase agreement with Nomis Sim Siang Leng and Simson Sim Xian Zhi — both directors of Perfect CLQ.
The CLQ, with a built-up area of 67,611 sq ft, comprises seven blocks of three-storey modular houses. These structures will include amenities such as site offices, canteens, convenient stores, clinics, laundry rooms and utility rooms.
Upon completion, the CLQ will be rented out as workers’ accommodation.
Unitrade said the purchase consideration for the proposed acquisition will be funded through bank borrowings and a proposed private placement of 10% of its enlarged share base which was issued on Feb 27.
“Barring any unforeseen circumstances and subject to all relevant approvals being obtained, the proposed acquisition is expected to be completed by the end of the first quarter of the financial year ending March 31, 2025,” said Unitrade.
Its managing director Nomis Sim Siang Leng said the group has taken the strategic step forward through the development of CLQs as it recognises the growing industry demand for economical and space-efficient worker accommodations.
“These CLQs will not only enable efficient centralised worker management and transportation, but also ensure a safe and healthy living environment for workers which bodes well with the evolving directives of Malaysian state governments regarding worker residence,” he added.
Shares in Unitrade ended down one sen or 3.45% at 28 sen, giving the company a market capitalisation of RM437.5 million.
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Source: EdgeProp.my
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