Klang: Luxchem Corporation Bhd, through its wholly-owned subsidiary Luxchem Trading Sdn Bhd (LTSB), has entered into agreements to purchase five leasehold industrial plots in Mukim Kapar, Klang, for RM45.6 million. The chemical product manufacturer revealed this in a filing with Bursa Malaysia today, noting that the lands cover a combined area of 4.03 hectares with leases set to expire on March 28, 2095.

According to BERNAMA News Agency, Luxchem described the acquisition as part of its business expansion strategy and disciplined capital allocation framework. The company views this move as a strategic effort to diversify its asset base while optimizing surplus cash reserves. Luxchem explained that instead of holding excess funds in fixed deposits with modest returns, the group aims to invest in real estate assets for better long-term yield potential through capital appreciation, future development prospects, and immediate rental income.

The plots are being purchased from two private firms, Leisure Harvest Sdn Bhd and Excellent Delight Sdn Bhd. Luxchem anticipates that the acquisition, barring any unforeseen circumstances, will be finalized within four months from the date of the sales and purchase agreements.

The board of Luxchem believes that the proposed acquisition aligns with the group’s best interests, considering the strategic location and income-generating potential of the properties. The group further indicated that the acquisition will be financed through a combination of internally generated funds and bank borrowings.