Mieco Chipboard Bhd has entered into an agreement to dispose of a 16.9-acre industrial property in Semenyih, Selangor for RM57 million as part of its strategic efforts to strengthen long-term business sustainability amid a more challenging operating landscape.

The asset comprises industrial land together with an office building, factory facilities and warehouse space. The buyer, Jin Ye Ye Sdn Bhd — a company involved in wholesale, retail and trading of confectionery, processed food and beverages — will acquire the property under a conditional sale and purchase agreement signed with Mieco’s subsidiary, Seng Yip Furniture Sdn Bhd.

According to the group, the majority of proceeds from the disposal will be utilised to settle redemption obligations tied to the property. Remaining funds are expected to support working capital requirements as well as cover transaction-related costs and taxes.

Based on its audited financial position as at end-December 2024, the property carried a net book value of approximately RM40.23 million. Following completion, Mieco anticipates recording an estimated net gain of about RM11.27 million from the transaction. The deal is targeted for completion in the second half of 2026, subject to the fulfilment of agreed conditions.

From a broader industrial real estate perspective, such asset rationalisation reflects how manufacturers are increasingly optimising land holdings and operational footprints to remain competitive. In growth corridors across Klang Valley, demand continues to be driven by occupiers seeking well-located industrial land in Selangor with ready infrastructure and connectivity advantages.

At the same time, companies exploring relocation or expansion strategies are actively evaluating modern production facilities, including purpose-built factory in Puchong and strategically positioned industrial property in Subang area, where logistics efficiency and access to skilled labour remain key considerations.

Parallel to industrial activity, corporate ecosystem growth continues to sustain interest in commercial property in KL, while decentralised business hubs are boosting demand for integrated office space in Bukit Jalil. These evolving trends highlight how industrial disposals and acquisitions can reshape investment patterns and operational strategies within Malaysia’s property landscape.

Mieco’s shares were last traded at 65 sen on March 18, giving the company an estimated market capitalisation of about RM650 million.