KUALA LUMPUR: SWS Capital Bhd
(SWS) said its strategic initiatives aimed at diversifying and expanding its business activities involve the property sector and has proposed to enter into a memorandum of understanding for a proposed joint development project.
"This collaboration aims to develop two blocks of commercial buildings as part of a mixed development project located in Sungai Buloh, Selangor,” it said in a filing with Bursa Malaysia.
SWS will also acquire properties and an investment holding company that owns industrial real estate from a related company for a total consideration of RM61.61 million in order to strengthen its presence in the property sector. The filing said this will contribute to the company’s expansion in the sector.
Among its proposed acquisitions include a parcel of leasehold industrial land located in Pasir Gudang Industrial Area, Johor, with a warehouse and an office and another leasehold industrial parcel in Klang, Selangor.
The company will undertake a renounceable rights issue to raise a minimum of RM180 million to fund its growth initiatives.
Finally, to reflect its strategic direction and expansion plan into the sector, SWS has proposed to change its name to Hextar Homes Bhd to reflect its focus on the property industry and its commitment to becoming a key player in the sector.
Commenting on the group’s proposals, SWS executive director Teh Li King said the property sector is known for its long-term stability and consistent returns.
"Investments in properties offer rental income potential and capital appreciation over time. Moreover, as economies experience growth and businesses flourish, the demand for industrial properties tends to rise, creating additional opportunities for SWS.
The proposals are expected to have a positive impact on the group's financial performance, he said.
Meanwhile in separate statement, Hextar Technologies Solutions Bhd (HexTech) announced that it is proposing to monetise its portfolio of properties and property holding companies for a total aggregate consideration of RM78.31 million.
Two wholly owned subsidiaries of HexTech, namely Pengangkutan Sekata Sdn Bhd (PSSB) and Sin Hiap Hoe Trading & Transport Sdn Bhd (SHHTTSB) today have entered into respective sale and purchase agreements to divest their land and buildings to SWS In Medics Sdn Bhd (SIMSB) for RM23.66 million.
SIMSB is a wholly owned subsidiary of SWS.
PSSB owns a parcel of leasehold industrial land in Pasir Gudang Industrial Area, Johor which has been ascribed a market value of RM15.30 million. - Bernama
