CEO Morning Brief

Solarvest Buys Office Space From Related Party Chin Hin Property for RM48.73 Mil Cash

Publish date: Fri, 14 Jun 2024, 10:32 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (June 13): Solarvest Holdings Bhd (KL:SLVEST) is buying four levels of office space with 200 parking bays and a rooftop retail unit in the Solarvest Tower, which is currently under construction, from Chin Hin Group Property Bhd (KL:CHGP).

The purchase costs Solarvest RM48.73 million cash.

The transaction is deemed a related party transaction as the duo have common shareholders.

Chin Hin Group Bhd (CHGB) controls a 57.13% stake in Chin Hin Property. Meanwhile, CHGB’s major shareholders, Datuk Seri Chiau Beng Teik and his son Chiau Haw Choon, collectively hold an aggregate 11.95% shareholding in Solarvest.

Beng Teik is the chairman of Chin Hin Property while Haw Choon is an executive director.

In a filing with Bursa Malaysia on Thursday, Solarvest said the proposed acquisition is to allow the company to set up its new headquarters and own a permanent business premises for growing its business, operations and staff strength.

The total combined built-up area of the acquisition came up to 39,375 sq ft.

"By doing so, Solarvest is able to set up a business facility that suits its business requirement at the subject properties (Solarvest Tower) for better operating and cost efficiencies in the long term," it said.

Solarvest said the purchase consideration shall be financed via a combination of internally generated funds and bank borrowings, the proportion of which will be determined at a later date.

Located within the Bangsar South vicinity, the 34-storey Solarvest Tower is currently under construction and is expected to be completed in March 2028. As at May 23, 2024, the construction works for the tower were approximately 40% completed, according to Solarvest.

Barring any unforeseen circumstances, the proposed acquisition is expected to be completed by the second half of 2024.

Solarvest’s share price has climbed nearly 26% or 34 sen year to date. The stock closed a sen higher or 0.61% at RM1.66, giving it a market capitalisation of RM1.15 billion.

Source: TheEdge - 14 Jun 2024

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