LB Aluminium to buy industrial property in Subang Jaya for RM25m

PETALING JAYA: LB Aluminium Bhd, via its subsidiary Albe Metal Sdn Bhd, is acquiring a parcel of freehold industrial land together with industrial buildings and structures located in Subang Jaya, Selangor for RM25 million cash.
It told the stock exchange that its unit entered into a sale and purchase agreement with Facade Treatment Engineering Sdn Bhd for the proposed acquisition, as well as a tenancy agreement for the rental of the property to the vendor.
The group said the acquisition will enable it to establish an additional source of recurring income and benefit from potential capital appreciation of the property in the foreseeable future.
The property includes a parcel of industrial land measuring 3.12 acres with an industrial complex comprising an office building, factories and a guard house.
The acquisition will be funded from internally generated funds and/or bank borrowings and to be completed by the third quarter of the year. The group expects the rental income to contribute positively to its earnings for the next financial year.
The group's share price was down 2.5 sen or 4.13% to 58 sen, with 401,400 shares traded.