ENGINEERING and construction firm Yongnam Holdings said it has entered into an interested person transaction, through wholly owned subsidiary Yongnam Engineering & Construction Sdn Bhd, with Vee Sen Property Sdn Bhd to buy three pieces of adjacent freehold industrial land at Ulu Choh, Pontian, Johor, Malaysia.
Vee Sen is 45 per cent owned by non-executive and non-independent director Tan Nin Nam, Yongnam's founder.
The land area is 947,405 sq ft. Yongnam will pay RM38.4 million (S$13 million).
The company said that it bought the land as a permanent solution to a shortage of materials storage space in Singapore. The purchase will also result in cost savings from rental costs and allow its Malaysian subsidiary the flexibility to tender for local projects in Malaysia.
Yongnam closed at 38 Singapore cents, down half a cent, before the announcement.