Mi Technovation subsidiary buys Singapore industrial hub for S$103.88mn
The Malaysian firm's wholly-owned subsidiary, Ohima International, is establishing a global operational hub for its vehicle technologies unit in the seven-storey building.
Singapore Property Acquisition
Malaysian technology company Mi Technovation Bhd is expanding its Singapore presence with the proposed acquisition of a seven-storey light industrial building. Its wholly-owned subsidiary, Ohima International Pte Ltd, entered a conditional sale and purchase agreement on 30 October. The property, known as KHL Building, is located at 25 New Industrial Road.
Mi Technovation disclosed in a Bursa Malaysia filing that the purchase price is S$103.88 million, equivalent to approximately RM331.8 million.
New Global Operational Hub
Mi Technovation stated the acquisition supports the expansion of its vehicle technologies business unit. The new facility will serve as its global operational hub and a larger headquarters in Singapore.
Plans include housing a main data and computing centre, a digital twin and artificial intelligence (AI) centre, along with product development, sales, finance, and customer experience operations for the unit.
Funding Structure and Savings
The company expects to finance the acquisition through a combination of bank borrowings, proceeds from a recent listing, and internal funds. Mi Technovation plans to cover RM247.2 million via bank loans and RM81.3 million from the listing of Mi Material Holding Ltd on the Singapore Exchange. The remaining RM3.3 million will come from internally generated funds.
This relocation from current leased premises in Queenstown is projected to yield annual rental savings of around RM1.05 million.
Completion Expected Q1 2027
The proposed acquisition is contingent on securing shareholder approval and fulfilling other relevant conditions. Mi Technovation anticipates completing the transaction in the first quarter of 2027.
This move signifies the company's commitment to consolidating its advanced technology operations within a single, owned facility, potentially streamlining costs and enhancing operational efficiency for its vehicle technologies unit in Singapore.
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