Resintech’s Strategic Partnership with CNH Group: Securing Success Through Tenancy Agreement with Concepts ATC
A company that makes plastic pipes and fittings, Resintech Bhd have joined forces with CNH Group Sdn Bhd to be involved in the hostel project in Kuala Langat, Selangor. The total estimated value of the project is RM34.1 million of which a portion will be built on part of a 4.6 acre land owned by Resintech’s subsidiary, Johan Panglima (M) Sdn Bhd which bought the land in 2021 for RM23.54 million. The land is being used as a bank loan collateral with RM17.87 million still owing.
As part of their joint venture, CNH Group will invest RM1.8 million to acquire a 45% stake in Johan Panglima by buying 1.8 million new shares. At the same time, Resintech will invest RM200,000 for 200,000 shares worth a total holding of 2.2 million shares, maintaining a controlling 55% shareholding in Johan Panglima.
This construction is expected to start in May 2025 after the local public authorities have given the required permissions. Set to cost RM22.6 million, the project involves three blocks of hostels and retail shops and will be funded through a blend of internal funds and loans.
In a move that secures income before the project even begins, Johan Panglima has signed a three-year rental agreement with Concepts ATC, a company specializing in worker accommodation. Concepts ATC will rent all three blocks, which include 158 hostel units and four retail shops, for a total of RM12.09 million over the period. There’s also an option to extend the lease for another three years with a rental increase of up to 10%.
Resintech’s founder and managing director, Datuk Dr. Teh Kim Poo, emphasized that the partnership with CNH Group will enhance Resintech’s expertise in property development, while the early rental agreement guarantees a steady income stream once the project is completed. This, according to Teh, will help cover operational costs and boost the company’s long-term financial stability.
On the stock market, Resintech’s share price dipped slightly by 0.5 sen, closing at 58 sen, giving the company a market value of RM114 million.
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