KARYON Industries Bhd is acquiring a freehold industrial property in Johor for RM8.61 million as part of its plan to expand manufacturing capacity and storage space.

In a filing with Bursa Malaysia, the group said its wholly owned subsidiary Hsing Lung Sdn Bhd had entered into a sale and purchase agreement with Tanah Temasik Sdn Bhd for the acquisition.

The property comprises a 3,587 sq m parcel of freehold industrial land together with a detached factory located in Bandar Seri Alam, Masai, Johor.

The purchase price is below its market value of RM8.8 million, based on an independent valuation dated June 22.

Karyon said the acquisition will be funded via RM2.61 million in internally generated funds and RM6 million in bank borrowings.

The group said the property is strategically located near its existing head office and factory, and will be used to support new manufacturing lines and increase warehousing capacity.

The acquisition is expected to be completed by the fourth quarter of 2026 and is not expected to have a material impact on earnings for the financial year ending March 31, 2027, but is anticipated to contribute positively to future earnings.