WTK sells 6-acre Perai factory site to NationGate for RM38m

WTK Holdings Bhd is selling three leasehold industrial lots on Lorong Perusahaan 1 in the Perai Industrial Estate, Penang, 265,003 sq ft or about 6.08 acres, to NationGate System Sdn Bhd for RM38 million cash, about RM143 psf of land. It is a sale of the land and buildings, not of a company: WTK's tape maker, Loytape Industries Sdn Bhd, signed the agreement on 30 September 2026, and the titles will pass to NationGate System, a unit of NationGate Holdings Bhd. Completion is expected in the second quarter of 2027.

The property

• Lot 692 (PN 1336): 136,666 sq ft with a single-storey and a 1½-storey detached factory of 90,325 sq ft, about 30 years old. Lease to November 2045, about 19 years left. Price: RM19.6 million
• Lot 682 (PN 1335): 84,736 sq ft of vacant land. Lease to November 2069, about 43 years left. Price: RM12.15 million
• Lot 2806 (PN 1337): 43,601 sq ft with a single-storey office and a scrap-area building, about 30 years old. Lease to August 2072, about 46 years left. Price: RM6.25 million
• Valuation: Azmi & Co (Kedah) valued the three at RM32.9 million, so the price is 15.5% above it

The deal

• Payment: 10% (RM3.8 million) on signing and the RM34.2 million balance within three months of the agreement turning unconditional
• Conditions: state consent, and Penang Development Corporation consent where needed; all three lots complete together; no shareholder vote is needed
• Gain: about RM30.46 million, after the RM4.95 million carrying value and RM2.58 million of estimated gains tax
• Why: a fire on 17 January 2025 damaged the plant's office and tape-coating lines. WTK says it then sped up a shift from making tape to converting and distributing it, which needs far less space, and will move the business to a smaller site it has not yet chosen
• Proceeds: RM33.92 million for working capital, including RM2 million to relocate the tape factory; the rest covers the gains tax and RM1.5 million of expenses

The numbers

• Per sq ft of land: RM38 million ÷ 265,003 sq ft ≈ RM143 psf. The agreement splits the price by land area, so each lot works out to the same RM143 psf, built on or vacant
• Against the valuation: on that split, Lot 692, with the factories and the shortest lease, is 2% above its RM19.2 million value; the vacant and office lots together are 34% above their RM13.7 million
• Per sq ft of built-up: Lot 692's RM19.6 million over 90,325 sq ft of factory floor is about RM217 psf
• Against cost: 3.6 times the RM10.66 million Loytape spent on the land and buildings

The buyer

NationGate, a Penang electronics manufacturing services group, had RM362.8 million of contracted spending on property, plant and equipment at 30 June 2026. The WTK lots are its fourth Perai purchase since 2023:

• August 2023: 188,385 sq ft (4.3 acres) with a 97,773 sq ft factory on Lorong Perusahaan Baru 2, for RM23.8 million: about RM126 psf of land, lease to 2049
• February 2024: the company Hesechan Industries, for RM25 million, the valuation of its 6-acre site of 51-year-old buildings with a lease to 2070: about RM96 psf of land
• December 2025: the company Valeo Malaysia CDA, for RM60.89 million; it owns two factories on Lorong Perusahaan 8 that were valued at RM30 million in 2024

As of 6 October, NationGate had not made its own announcement on the WTK purchase or said what the lots will be used for.

In the same estate, YBS International agreed in August to pay about RM270 psf of land for a two-acre semi-detached factory lot on Lorong Perusahaan 4 whose lease ends in 2032 (our report).

Cover map: EPIQ, via EdgeProp.