Life Water plans RM15m KKIP warehouse acquisition for expansion
Life Water Bhd plans to acquire an industrial property in Kota Kinabalu Industrial Park, Sabah, for RM15 million. The company's subsidiary signed a sale and purchase agreement on Oct 7, with the property to be used for warehouse space to support business expansion near existing manufacturing facilit
PETALING JAYA (Oct 8): Life Water Bhd plans to acquire an industrial property near its existing manufacturing operations in Kota Kinabalu Industrial Park (KKIP), Sabah, for RM15 million, with the property earmarked for warehouse use to support business expansion.
In a Bursa Malaysia filing on Thursday (Oct 8), the group said its wholly-owned subsidiary Green Borneo Industries Sdn Bhd (GBI) signed a sale and purchase agreement with Kee Foh Haw Sdn Bhd on Oct 7. Life Water said the property’s proximity to GBI’s manufacturing facilities within KKIP is expected to improve operational efficiency and provide additional space for the group’s future expansion. GBI manufactures drinking water.
Located at Lot 10, Jalan 1F, Industrial Zone 4, KKIP Selatan, the property comprises approximately 130,243 sq ft of land with a purpose-built office complex and ancillary workshop. The approximately 20-year-old buildings have a gross floor area of about 19,300 sq ft. The property is held under Country Lease No. 015750508 in the district of Kota Kinabalu, with a 99-year lease expiring on Dec 31, 2110.
The group said the purchase price was agreed on a willing-buyer, willing-seller basis, taking into account the property’s strategic location and market values of industrial properties in the surrounding area. According to the filing’s funding breakdown, Life Water plans to finance the purchase with RM2.25 million in internally generated funds and RM12.75 million in bank borrowings.
The group identified the pending transfer of the property’s title to the vendor as a transaction risk. The title currently names developer K.K.I.P. Sdn Bhd as the registered proprietor, as the transfer to Kee Foh Haw has yet to be perfected. The agreement provides for the transfer either through the developer to the vendor and subsequently to GBI, or directly from the developer to GBI, as applicable.
Under the agreement, the RM13.5 million balance is payable within four months from the date the vendor secures and furnishes the requisite memorandum or memoranda of transfer. A one-month extension is available upon request, subject to interest of 6 per cent a year on the outstanding balance. Completion remains subject to the agreement’s terms, including registration of the transfer to GBI, settlement of the balance and delivery of vacant possession.
Life Water said the proposed acquisition does not require shareholder or regulatory approval and is not expected to materially affect the group’s earnings or consolidated earnings per share for the financial year ending June 30, 2027.
