Tuesday, October 18, 2011

K-Star Sports buying China property for RM13.15m

KUALA LUMPUR: China-based shoe manufacturer K-Star Sports Ltd is buying a piece of state-owned leasehold land, measuring 675 square metres, in Jinjiang City, China for 27 million renminbi (RM13.15 million) cash.

It said on Tuesday, Oct 18 its unit Fujian Dixing has signed a sale and purchase agreement with Jinjiang Saifeite Shoes Plastics Co. Ltd to acquire the property, which included a five-storey building.

Fujian Dixing's core activity is the design, manufacture and distribution of sports footwear, sports apparel and accessories under K-Star's own brands.

On the rationale, it said Fujian Dixing has been growing and expanding in recent years. It expected to run out of office space and hostel in the near future.

'The acquisition is in line with the group's expansion plan to expand its factory operational area,' it said, adding the group was expected to reduce its rental expense by about RM375,912 per annum, based on the existing tenancy agreement with Saifeite, which would expire on Sept 30, 2012.

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