Dynaciate to venture into industrial and commercial warehousing sector
April 16, 2021 by Bernama
KUALA LUMPUR (April 16): Dynaciate Group Bhd plans to venture into industrial and commercial warehousing which is touted to be one of the top performing sectors for 2021.
Subsequent to that, it has come to a mutual agreement with MGudang Sdn Bhd to terminate a conditional sales and purchase agreement (SPA) involving disposal of two parcels of contiguous freehold land together with a detached factory situated in Penang.
In a statement today, Dynaciate said the move was part of its recalibration of strategic plan in order to strengthen business activities and operations to better position the group amid a challenging environment faced by its existing businesses which are mainly in the construction and engineering segments.
It noted that many industries and markets had suffered due to the Covid-19 pandemic but that the industrial property sector was evidently one of the more resilient sectors, as shown in many industries and analysts’ reports.
Executive director Woon Kok Kee said the termination of the conditional SPA was a wise decision to value-add the group’s prospects, with the said property having appreciated in value incrementally, while the demand for warehousing and storage space had also been overwhelming.
He said Dynaciate is confident that the new venture will contribute positively to the income of the group through the recurrent rental returns and property value appreciation returns while reducing dependency on its existing businesses.