KUALA LUMPUR (Dec 3): Muar Ban Lee Group Bhd (KL:MBL), a manufacturer of palm kernel expellers, has purchased two industrial land parcels with existing buildings in Muar, Johor, for a total of RM9.5 million as part of its ongoing strategy to expand production capacity.
According to a filing with Bursa Malaysia, the acquisition is intended to enhance manufacturing efficiency and support rising customer demand.
“The properties are expected to provide additional space for automation, warehousing and R&D, while also consolidating operational activities by integrating the acquired properties with the existing factory,” the group said.
The transaction was carried out through MBL’s wholly-owned subsidiary, Muar Ban Lee Technology Sdn Bhd, which signed a sale and purchase agreement with Airegold Sdn Bhd. Airegold specialises in property investment and subcontracting services for oil palm and other agricultural products.
Property Details and Strategic Benefits
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Total land area: 2.262 acres
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Buildings: Approximately 29 years old, sitting on 60-year leasehold titles
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Location: Directly adjacent to MBL’s existing manufacturing facility, enabling seamless operational integration and avoiding relocation costs
MBL confirmed that no independent valuation was commissioned but stated the purchase price was considered “fair and reasonable.”
The acquisition will be funded via a combination of internally generated funds and bank borrowings, with completion expected within 90 days.
Market Context
The move strengthens MBL’s industrial footprint in Johor, reflecting broader trends of capacity expansion and operational consolidation in Malaysia’s manufacturing sector. The transaction underscores the continuing demand for industrial land in Selangor and other strategic locations, as well as investment opportunities in factories in Puchong and industrial property in the Subang area, supporting growth in both production and logistics operations.
Shares of MBL closed unchanged at 34 sen on Wednesday, valuing the group at RM84.62 million, with a year-to-date decline of more than 15%.
