Resintech Berhad announced today two significant agreements that will strengthen the Company's financial performance and further its strategic expansion into property development
Firstly its subsidiaryJohan Panglima has entered into a Share Subscription Agreement with CNH Group Sdn Bhd and a Tenancy Agreement with Concepts ATC Sdn Bhd. Upon completion of the subscription, Resintech's shareholding in Johan Panglima will dilute to 55%, while CNH Group will hold the remaining 45%.
The group said the capital injection will be utilised for the joint development of a 4.5957-hectare land in Telok Panglima Garang, Selangor, into a mixed development project. The project, which is expected to commence in May 2025, has an estimated development cost of RM22.6 million and a gross development value of RM34.1 million, will comprise 158 units of worker hostels, four retail units, a canteen, and various other facilities. The construction is anticipated to be completed within 24 months.
Concurrently, Johan Panglima it said has also entered into a Tenancy Agreement with Concepts ATC, a company specialising in the supply of labour and worker accommodations. The agreement involves the tenancy of three blocks of buildings, including 158 hostel units and four retail shops. These facilities will serve as worker accommodations and commercial outlets, with Concepts ATC assuming tenancy upon completion of the project.
The tenancy comes with an initial rental rate of RM255,150 per month for the first three months, increasing to RM348,300 by the third year. The total rental over the 36-month period is estimated at RM12.09 million. There is also a provision for a further three-year renewal, subject to a mutually agreed rental increment of no more than 10%.
