KUALA LUMPUR (May 1) — KPS Consortium Bhd is taking a strategic step to strengthen its industrial asset base with a proposed RM45.4 million acquisition of freehold factory properties in Rawang, Selangor.
The group, best known for its tissue-related manufacturing operations, is acquiring the assets via its wholly owned subsidiary, KPS Plywood Sdn Bhd. The transaction involves three separate deals covering a mix of industrial property types within Taman Industri Nautical.
The largest portion of the acquisition consists of 16 units of four-storey semi-detached factories valued at RM38.32 million. In addition, the company will purchase 13 units of single-storey low-cost factories for RM3.05 million, along with a four-storey detached factory on an individual title for RM4.13 million.
All the properties are being acquired from Nautical Wealth Sdn Bhd, which is currently under liquidation following a High Court order in 2021. The agreements were executed through a court-appointed liquidator, according to the group’s filing on Bursa Malaysia.
KPS Consortium said the purchases will be funded through a combination of internal cash reserves and bank borrowings, reflecting a balanced capital approach while preserving liquidity.
Strengthening Recurring Income Potential
The acquisition aligns with the group’s broader strategy to build recurring income streams through industrial property investments. With freehold tenure and a cluster-based industrial setting, the Rawang assets are expected to offer long-term value appreciation alongside stable rental yields.
This move also complements KPS Consortium’s diversified business model, which spans five core segments: paper milling, paper converting, building materials trading, property development and construction, as well as investment holdings.
Riding Momentum from Construction Wins
The proposed acquisition comes shortly after the group secured a RM106.96 million construction contract for a high-rise residential project near Kuala Lumpur. The project, slated for completion within three years, further boosts its construction order book and earnings visibility.
Financial Position Remains Manageable
For the financial year ended Dec 31, 2025, KPS Consortium recorded a net profit of RM22.45 million on revenue of RM1.04 billion, demonstrating resilient performance despite broader market challenges. Its net debt stood at RM22.1 million, indicating a relatively controlled leverage position even as it expands its asset base.
Investor sentiment appeared positive following the announcement, with the company’s share price rising 7.44% to close at 65 sen, giving it a market capitalisation of approximately RM306.3 million.
What I Learned from This News
This development highlights how manufacturing companies like KPS Consortium Bhd are increasingly investing in industrial properties to diversify income beyond their core operations. Instead of relying solely on production and sales, they are building asset-backed income streams that can generate rental returns and long-term capital appreciation.
Another key takeaway is the opportunity presented by distressed assets. By acquiring properties from a liquidated company like Nautical Wealth Sdn Bhd, KPS may be securing these assets at relatively attractive valuations, which could enhance future returns.
Lastly, the move shows the importance of strategic balance. While expanding through acquisitions, the group is still maintaining a manageable debt level and leveraging its growing construction pipeline — a sign of disciplined growth rather than aggressive overextension.
Overall, this reflects a broader trend in Malaysia’s industrial and logistics property market, particularly in Selangor, where demand for factory space and investment-grade industrial assets continues to strengthen.
Malaysia