Disposal of two industrial plots aims to monetise non-core assets and boost liquidity
Chin Hin Group Property Berhad (CHGP) has entered into a RM19.3 million cash deal to sell two freehold industrial plots in Johor Bahru, marking another step in its strategy to divest non-core assets and strengthen financial flexibility.
Details of the Disposal
On 23 September, CHGP signed a Sale and Purchase Agreement (SPA) with Miroad Rubber Industries Sdn Bhd (MRISB) for the disposal of two parcels in Kampung Kangkar Tebrau. The properties comprise a 1.35-hectare vacant plot and a 0.89-hectare parcel with a detached workshop and office.
Valuation and Constraints
The land was affected by a high-voltage pylon and right-of-way built by Tenaga Nasional Berhad in 2018, limiting its development potential. Although the RM19.3 million sale price is below the combined market valuation of RM28.8 million as of February 2025, CHGP highlighted that the transaction still represents a substantial gain compared to the original purchase price of RM6.76 million in 2012.
Use of Proceeds
CHGP disclosed that proceeds from the disposal will be used to strengthen its balance sheet and support financial obligations. Allocation of funds includes:
- RM10 million for bank loan repayments
- RM7.62 million for working capital
- RM1.21 million for real property gains tax
- RM477,000 for estimated disposal expenses
Buyer Profile
MRISB, incorporated in 2003, is a Johor-based company specialising in recycled rubber products. With more than two decades in the sector, the acquisition aligns with its industrial footprint and growth strategy.
Strategic Rationale
CHGP stated the disposal is in line with its focus on monetising non-core assets and channeling resources into higher-potential developments. The group sees the move as a way to improve cash flow while reducing reliance on borrowings.
Market Position
Barring unforeseen circumstances, the transaction is expected to conclude by June 2026. Shares in CHGP (KL:CHGP) closed unchanged at RM1.22 on Tuesday, giving the group a market capitalisation of RM1.61 billion.
The Johor land sale illustrates CHGP’s pragmatic approach to asset management—converting underutilised parcels into liquidity while reinforcing its balance sheet. For investors and regional stakeholders, the disposal signals the company’s continued focus on financial discipline and sustainable growth.
Sources: Business Today Malaysia (2025) , The Edge Malaysia (2025)
Keywords: Chin Hin Group Property, Johor Industrial Land, Miroad Rubber Industries, Bursa Malaysia, Property Disposal, Asset Monetisation
