KUALA LUMPUR: Mi Technovation Bhd is buying a seven-storey industrial building in Singapore for RM331.8 million to establish a global operational hub for its vehicle technologies business.
In a filing with Bursa Malaysia, the company said the proposed acquisition would support the expansion of its vehicle technologies business unit (VTBU).
VTBU is developing and commercialising electric powertrain systems and related core components.
Mi Technovation said its subsidiary Ohima International Pte Ltd signed a conditional sale and purchase agreement with Kim Hup Lee & Co (Private) Ltd to buy the KHL Building at 25 New Industrial Road.
The purchase consideration is based on an independent valuation of the property as at Sept 17.
The vacant freehold property has a gross floor area of 10,348.4 square metres, or about 111,389 square feet, and is located near the Tai Seng and Paya Lebar precincts, about 9.3km from Singapore’s city centre.
Mi Technovation said the property would serve as VTBU’s future Singapore headquarters and global operational hub.
“The property is expected to house a main data and computing centre, a digital twin and artificial intelligence centre, a product definition and strategy centre, a worldwide sales and marketing centre, a worldwide finance and legal centre, a customer experience centre and other ancillary facilities,” it said,
The company said VTBU’s progress in developing and commercialising its electric powertrain systems, alongside revenue generation in the first half of the financial year ending Dec 31, 2026, had created the need for a larger facility.
Currently, VTBU operates rented manufacturing and research and development facilities in Hangzhou, Xi’an and Chongqing, China, with a combined built-up area of about 10,809 sq m.
Its existing Singapore headquarters occupies a leased 568 sq m building in Queenstown.
The lease runs until Nov 30, 2028, after which the company intends to relocate its headquarters to KHL Building.
The acquisition is expected to generate annual rental savings of about S$330,000 (RM1.05 million).
Mi Technovation said ownership of the property would provide it with greater control and flexibility over its operational premises, while reducing reliance on leased facilities and uncertainty over rental costs.
The purchase will be funded through a combination of bank borrowings, proceeds from the listing of Mi Material Holding Ltd on the Singapore Exchange and internally generated funds.
The indicative funding comprises S$77.4 million in bank borrowings, S$25.44 million from the listing proceeds and S$1.04 million in internal funds.
The company also expects to incur about S$5.31 million in incidental acquisition costs.
The acquisition is subject to shareholders’ approval at an extraordinary general meeting and other relevant approvals.