Wentel Engineering Holdings Bhd has proposed to acquire two medium-sized semi-detached industrial factory units in Tebrau, Johor Bahru for RM29.58 million through a related-party transaction.

The properties are being purchased from Twin Galaxy Development Sdn Bhd, a company linked to Wentel’s founder and substantial shareholder Wong Kim Fatt and his spouse Loo Sok Ching. Given the familial and corporate connections involving several members of the group’s leadership, the proposed acquisition will require approval from non-interested shareholders at an extraordinary general meeting.

According to the company, the factory units will be utilised as a dedicated finishing facility to support operations at its upcoming manufacturing plant located nearby in Kawasan Perindustrian Selatan. By separating finishing processes such as buffing and surface coating from core fabrication activities, Wentel aims to optimise production space, reduce contamination risks, and meet customer expectations for specialised finishing environments.

The industrial properties are strategically located about 0.5km from the new plant site, enabling smoother integration between fabrication and finishing processes. This proximity is expected to improve logistics coordination, shorten production turnaround times, and enhance the company’s competitiveness in sectors such as machinery and equipment manufacturing, semiconductor machinery, and medical device components.

Wentel’s new facility at Lot 815 is scheduled to commence operations in the second half of 2026. As part of its operational restructuring plan, the group intends to relocate activities from its existing Lot 58 premises while continuing to operate its facilities at Lot 11 and Lot 81.

While the acquisition is positioned as a long-term capacity expansion strategy, completion is only expected by the first quarter of 2029, subject to shareholder approvals.

From a broader industrial real estate standpoint, such purpose-driven manufacturing expansion highlights sustained demand for specialised facilities across Malaysia’s key growth corridors. Although this project is located in Johor, similar market dynamics are evident in Klang Valley, where businesses continue to seek industrial land in Selangor, modern factory in Puchong, and industrial property in Subang area to enhance supply chain efficiency and operational scalability.

At the same time, continued business ecosystem growth is supporting interest in commercial property in KL and well-connected office space in Bukit Jalil, particularly among technology-driven manufacturers that require integrated corporate and production locations.

Wentel’s shares recently closed at 24 sen, giving the group a market capitalisation of approximately RM276 million. Over the past year, the stock has declined by around 9.4%, reflecting broader market sentiment despite ongoing expansion initiatives.