KUALA LUMPUR (Sept 23) – Chin Hin Group Property Bhd (KL:CHGP) has entered into an agreement to dispose of two freehold industrial plots in Johor Bahru for RM19.3 million cash to Miroad Rubber Industries Sdn Bhd.

The properties, located in Kampung Kangkar Tebrau, consist of a 1.35-hectare vacant light industrial parcel and a 0.89-hectare plot with a detached workshop and office.

Although the disposal price falls below the combined market valuation of RM28.8 million (Feb 2025), CHGP said the price is fair due to site constraints, including a high-voltage pylon and Tenaga Nasional Bhd’s right-of-way.

The sale remains profitable, with CHGP noting a significant gain against its original purchase price of RM6.76 million in 2012.

Proceeds will be used for:

Bank borrowings repayment: RM10 million
Working capital: RM7.62 million
Real property gains tax: RM1.21 million
Estimated disposal expenses: RM477,000

The transaction is expected to be completed by June 2026.

Shares in Chin Hin Group Property (KL:CHGP) closed unchanged at RM1.22, giving the group a market capitalisation of RM1.61 billion.