Centurion Corporation said it has agreed to acquire a piece of land located at Seberang Perai Selatan in Penang, Malaysia, for RM6.3 million ($2.45 million). This marks the group’s first acquisition in another state of Malaysia outside of Johor.
The plot of land is located at the fringe of Bukit Minyak Industrial Park on the mainland of Penang, close to the North-South Expressway exit and along a key highway leading into the Industrial Park. Bukit Minyak Industrial Park houses multinational companies including Flextronics Technology and JCY HDD Technology. The location also provides easy access to a new hi-tech industrial park, Science Park, as well as the new Batu Kawan Industrial Park.
The proposed acquisition is subject to consent by the state of Penang, and is expected to be completed in 4Q 2014. Upon completion of the acquisition, the group will seek approval to convert the land, which is currently zoned for agricultural purposes, into use for workers accommodation development. The intended purpose-built workers accommodation will have capacity for around 5,000 workers, and will be managed under the Westlite brand.
Recognised as a key manufacturing hub in the region, Penang is home to over 300 multinational companies. Activity in the manufacturing sector is expected to be on the uptrend as the flow of foreign direct investments (FDI) into Malaysia strengthens. In 2013, Malaysia recorded its highest ever FDI of RM38.7 billion, of which close to 40% were investments made in the manufacturing industry.