DPI Holdings buys Sabah industrial lot for RM7.6m to expand East Malaysia network
DPI Holdings Bhd is acquiring a 2.05-acre vacant industrial lot in Kota Kinabalu Industrial Park, Sabah, for RM7.6 million. The 99-year leasehold site will support the group's FMCG distribution and warehousing expansion in East Malaysia.
PETALING JAYA (Oct 5) — DPI Holdings Bhd (DPIH) is acquiring a vacant industrial lot in Kota Kinabalu Industrial Park (KKIP), Sabah, for RM7.6 million to expand its fast-moving consumer goods distribution network and warehousing capacity in East Malaysia.
In a Bursa Malaysia filing on Friday (Oct 2), DPIH said its subsidiary Eastern Forever (Sabah) Sdn Bhd signed a sale and purchase agreement with UBK Furniture (M) Sdn Bhd on Aug 21 to acquire Lot 23A in KKIP’s Industrial Zone 12. DPIH said it announced the transaction on Oct 2 after receiving the duly executed and stamped agreement from its solicitors that day.
The approximately 2.05-acre parcel is held under master title Country Lease No. 045339320, situated in Kampung Telipok, Tuaran district, Sabah. It has a 99-year leasehold tenure expiring on Dec 31, 2098. The group said the acquisition is intended to enhance operational efficiency and strengthen its market presence in Sabah and East Malaysia.
DPIH said the RM7.6 million price was agreed on a willing-buyer, willing-seller basis, taking into account prevailing market values of comparable industrial land within KKIP, as well as the site’s strategic location and infrastructure readiness. The acquisition will be funded through internally generated funds and/or bank borrowings.
Under the agreement’s payment schedule, the deposits comprise an earnest deposit of RM228,000, representing 3 per cent of the purchase price, paid before signing, and a balance deposit of RM532,000, or 7 per cent, due upon execution. Of the balance deposit, RM380,000 is allocated for retention by the purchaser’s solicitors for real property gains tax remittance, while RM152,000 is allocated for release to the vendor’s solicitors. The remaining RM6.84 million is payable within three calendar months of obtaining developer K.K.I.P. Sdn Bhd’s written consent to the deed of assignment.
The property is currently assigned to Affin Bank Bhd as security for credit facilities granted to the vendor. The redemption sum will be settled from the balance purchase price. The agreement is conditional on the developer’s written consent to the deed of assignment and confirmation of redemption and discharge arrangements with Affin Bank, identified in the filing as the master-title chargee. Vacant possession will be delivered upon full payment.
DPIH expects the acquisition to be completed in the first half of 2027, subject to fulfilment of the agreement’s terms and barring unforeseen circumstances. The group said the purchase is not expected to have a material impact on its net assets, earnings per share or gearing for the financial year ending May 31, 2027. The transaction’s highest applicable percentage ratio is 8 per cent, based on DPIH’s latest audited consolidated financial statements. Shareholder approval is not required, although the purchase remains subject to approvals required from the relevant authorities.
