Mi Technovation acquires Singapore property for global hub expansion

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Mi Technovation expands global hub

Highlights

Mi Technovation, through Ohima International Pte Ltd, signed an agreement to purchase a seven-storey building on New Industrial Road for a new global hub.
The purchase will be funded through a combination of bank loans, proceeds from Mi Material Holding Ltd's S$203.2 million listing on the Singapore Exchange, and/or internally generated funds.
The vehicle technologies unit's move to the new property after 2028 is expected to save S$330,000 in annual rent, while shares fell 4.81% to RM6.53 on Friday.

This article was translated from the original. Read the original version by our correspondent here.

Purchase details and global hub plans

As reported by The Edge Malaysia, citing a Bursa Malaysia filing, the semiconductor equipment maker said its wholly owned subsidiary, Ohima International Pte Ltd, entered into a conditional sale and purchase agreement with Kim Hup Lee & Co (Private) Ltd on Friday to acquire the KHL building on New Industrial Road.

The seven-storey property has a gross floor area of 111,389 square feet and is currently vacant. Mi Technovation plans to turn it into a centralised operational hub housing data and computing centres, a digital twin and artificial intelligence centre, as well as global product strategy, sales and marketing, finance, legal and customer experience functions.

The purchase is intended to support the expansion of the group's vehicle technologies business unit, which currently operates from a leased headquarters in Queenstown with a built-up area of approximately 568 square metres. The transaction will be funded through a combination of bank loans, proceeds from Mi Material Holding Ltd's listing on the Singapore Exchange's Mainboard on 28 Oct, which raised S$203.2 million, and/or internally generated funds.

Operational implications and financial impact

The group said that owning the property would give it greater control and flexibility over its premises, while reducing its exposure to uncertainties around lease renewals and potential rent increases.

The vehicle technologies business unit will continue operating from its existing headquarters in Queenstown until its lease expires on 30 Nov 2028, before moving to the new property. The move is expected to generate annual rental savings of around S$330,000, equivalent to RM1.05 million.

Mi Technovation said the acquisition would also strengthen the group's long-term growth prospects, while offering the potential for capital appreciation from owning the property. The company's shares closed down 33 sen, or 4.81%, at RM6.53 on Friday, valuing the group at RM5.88 billion, while the stock remains up 134.89% year to date.

In our earlier coverage of approvals for 27 data centre projects in Malaysia under the data centre task force through July 2026, we highlighted the substantial investment value and the concentration of projects in Johor, Selangor and Negeri Sembilan. We also noted the impact on the skilled labour market, including projections of thousands of jobs for the local workforce, as well as minimum local content requirements and implementation monitoring set by the authorities.

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