PETALING JAYA: Hiap Teck Venture Bhd has proposed to acquire a 21.26-acre parcel of land in Kuala Selangor for RM48.61mil for its future expansion.

       In a filing with Bursa Malaysia, the company said the freehold agriculture land has been converted into medium industry use, to be known as Kapar 2 International Industrial Park.

       Currently, its subsidiary Hiap Teck Hardware Sdn Bhd (HTH) rents its warehouses for its operations. The acquisition will enable HTH to own its own warehouses for operations and future expansion without having to pay rental.

       The acquisition will be funded through internally generated funds and bank borrowings, with the actual ratio to be decided later.

       Consequently, the company’s gearing ratio will gradually increase upon commencement of bank borrowing and investment properties will increase upon completion of the payment schedule estimated by August 2024.