Kuala Lumpur, 25 September 2023,
Senheng New Retail Bhd is acquiring a central distribution centre (CDC) for RM75.8 million in a bid to strengthen its supply chain management in the country.
Its wholly-owned subsidiary Senheng Electric (KL) Sdn Bhd entered into a sale and purchase agreement with SDM Assets III Sdn Bhd (SDM), a wholly-owned subsidiary of Sime Darby Property MIT Development Sdn Bhd, to secure ownership of CDC.
The company said the acquisition will result in significant annual gross rental savings of RM4.2 million.
“The CDC is a key enabler of Senheng’s omnichannel shopping experience, enabling us to seamlessly serve our online and offline customers throughout Malaysia, while ensuring timely product deliveries and diverse offerings within our physical stores.
“The CDC acquisition strengthens our operational reliability, complementing our ongoing Territory Champion store expansion and upgrade strategy.
“It also supports our latest Online-Merge-Offline initiative that provides online customers personalised service by sales personnel from across the country, as well as seamless delivery and in-store pick up options,” said Senheng executive chairman Lim Kim Heng.
The CDC spanned 200,035 square feet comprising a warehouse, offices and ancillary buildings on a 2.67-hectare freehold industrial land.
Sengheng will procure bank borrowings of RM45.8 million and reallocate RM30 million from its initial public offering initially designated for its territory champion expansion strategy to finance the acquisition.
The acquisition is expected to be completed in the fourth quarter of 2023.
Source: Business Time
Full Article: https://www.nst.com.my/business/corporate/2023/09/959593/senheng-buys-cdc-rm758mil
