KUALA LUMPUR (Nov 15): Property developer Crescendo Corp Bhd (CCB) is stepping up its land sales in Pulai, Johor.
It plans to sell nine parcels of freehold vacant land in Pulai, measuring 82,496.4 sq m for RM111 million cash, following an announcement a week ago that it would divest seven parcels of adjoining lands, also in Pulai, for RM117.02 million cash.
CCB said it is expected to record a consolidated gain after taxation of approximately RM68.33 million from the latest disposal.
In a Bursa Malaysia filing on Wednesday, CCB said its wholly-owned unit Panoramic Industrial Development Sdn Bhd (PID) had inked a conditional sale and purchase agreement with Yu Ao Sdn Bhd (YASB), to dispose of the nine parcels of land (in two parcels classified as Parcel A and Parcel B).
“The lands were acquired during the period from March 24, 2005 to Feb 28, 2008 and the cost of the investment as of Jan 31, 2023 (inclusive of original land acquisition cost and other development and finance cost capitalised up to Jan 31, 2023) is approximately RM12.91 million,” CCB told Bursa Malaysia.
According to the group, the sale consideration of RM111 million, is calculated at the rate of RM125 per sq ft (psf).
However, if the Tenaga Nasional Bhd (TNB) power main switching station (SSU) waiver is obtained for the lands, the Parcel A purchase price will increase to RM59,713,200.36 at RM127 psf. Similarly, for Parcel B, TNB SSU waiver would push the purchase price to RM53,060,749.86 based on the rate of RM127 psf.
“The sale consideration is intended to be utilised for development of the balance landbank owned by the CCB Group and PID, to provide working capital for CCB Group and PID and/or settlement of the existing liabilities of CCB Group and PID,” it said, adding that the disposal is not expected to result in CCB falling under the Practice Note 17 status.
The disposal is expected to be completed in the third quarter of 2024.
As at end-July, Crescendo had RM77.39 million in short-term borrowings and RM204.2 million long-term borrowings. Its cash and bank balances stood at RM64.9 million.
At the time of writing CCB’s share price was four sen or 2.94% higher at RM1.40, valuing the group at RM392.65 million.