03-07-2025
- Business
- Malaysian Reserve
LB Aluminium acquires Banting industrial property for RM22m
LB Aluminium Bhd is acquiring a 6.74-acre leasehold industrial property in Banting, Selangor, for RM22 million as part of a strategic move to enhance its asset base while monetising a portion of the deal through a debt offset arrangement.
In a filing with Bursa Malaysia, the aluminium extrusion specialist said it is purchasing the property – which includes buildings — from Lucksoon Coatings Sdn Bhd.
As part of the transaction, LB Aluminium will enter into a contra agreement to offset RM4.01 million in outstanding debt owed by Lucksoon Coatings' related company, Lucksoon Metal Works Sdn Bhd, against the purchase price.
Upon completion of the acquisition, LB Aluminium will lease the property back to Lucksoon Metal Works under a three-year tenancy agreement.
The company is currently occupying the site for its metal works and metal product trading operations.
LB Aluminium said the property offers long-term capital appreciation potential due to its strategic location near Port Klang and Kuala Lumpur International Airport, with convenient access to major highways.
The acquisition will be funded via a combination of internally generated funds and bank borrowings. — TMR
