Khind eyes diversification into property development

Electrical product manufacturer Khind Holdings Bhd has proposed to diversify into property development, property construction and property investment.

In a filing with Bursa Malaysia, the company said it had transferred a vacant 6,070 sq m (65,340 sq ft) freehold land in Setia Alam, Shah Alam, to unit Khind Properties Sdn Bhd last month for mixed-use development with an estimated gross development value of RM150mil.

Initially, Khind had planned an office building on the land, partly for its own use and partly to be rented out to third-party tenants.

Subsequently, the board identified an opportunity to maximise the utilisation of the land by incorporating a retail component together with service apartments, the company said.

The planned development now is expected to include a building with an eight-storey office wing and 17-storey apartment wing, to be constructed above the ground and mezzanine floors (the building lobby, retail space, etc). There will also be an eight-storey podium carpark.

A majority of the offices will be retained for the group’s corporate office, which is currently located in Bukit Jelutong, Shah Alam.

Accorsding to Khind, the construction, which will span 36 months, is expected to cost about RM112.5mil (excluding financing cost) and will be funded through a a combination of bank borrowings, progressive sales billings and internally-generated funds,

The application for the development order was submitted to the Shah Alam City Council (MBSA) in April. Khind said it would give the building plan to MBSA within three months after receiving the approval for the development order.

“The planned development is expected to result in a diversion of 25% or more of the net assets of the group to an operation which differs widely from the current operations of the group and is expected to contribute 25% or more of the net profits of the group,” it said.

Therefore, the company will hold an EGM to seek shareholders’ approval.

Khind shares fell 10 sen to close at RM2.06 on Thursday. - By The Star