KUALA LUMPUR (April 4): Crescendo Corp Bhd has announced the disposal of a piece of vacant freehold land measuring 1.1 million sq ft in Pulai, Johor for RM132.47 million, or RM120 per sq ft.
In a bourse filing on Thursday, the Johor-based property developer said its wholly owned subsidiary Panoramic Industrial Development Sdn Bhd (PID) had entered into a conditional sale and purchase agreement with Microsoft Payments (Malaysia) Sdn Bhd for the proposed deal.
It is noteworthy that Crescendo disposed of three vacant pieces of land measuring 2.62 million sq ft, near the vicinity of the latest proposed land, for RM315.17 million cash to Microsoft Payments in November last year.
Crescendo anticipates a net gain of RM80.83 million from the latest proposed land sale.
The group intends to utilise the net cash proceeds of RM127.7 million to fund debt repayments (RM50 million), working capital (RM73.41 million) and related exercise expenses (RM11.5 million). Meanwhile, the remaining RM4.77 million will be incurred for disposal in relation to the estimated cost of development.
The sale and related exercise will require written confirmation from the Equity Development Division of the Ministry of Economy, as well as from the Johor state authority.
The proposed disposal is expected to be completed by the fourth quarter of 2024, barring any unforeseen circumstances.
Crescendo is 70%-owned by the founding Gooi family, which also holds a controlling stake in plantation group Kim Loong Resources Bhd.
Shares in Crescendo closed three sen or 0.99% higher at RM3.07, giving the group a market capitalisation of RM861.02 million. Year to date, the stock has rallied 32.33%.