KUALA LUMPUR (July 3): Property developer Naim Holdings Bhd (KL:NAIM) is disposing of a parcel of land in Samarahan, Sarawak to Onlyee Flora Sdn Bhd for RM223.38 million.

The 180.8-hectare mixed-zone vacant land is owned by Naim’s wholly-owned subsidiary, Naim Land Sdn Bhd, the group’s bourse filing on Wednesday showed. 

The transaction price represents a 4% premium over the current market value of RM215 million, as appraised by independent valuer VPC Alliance (Sarawak) Sdn Bhd.

Onlyee Flora is primarily engaged in holding companies and growing of oil palm estate, with its base in Kuching, Sarawak.

Naim Holdings said the disposal is part of its commitment to ensure long-term sustainability in its business operations in a tight property market dominated by substantial unsold properties.

“The board believes the proposed disposal would provide an opportunity to realise gains and unlock the value of its investment at fair and reasonable market value,” it added.

Proceeds from the sale will be used to partially repay existing bank borrowings (approximately RM67.5 million) while RM155.88 million will be allocated for working capital purposes and estimated expenses and associated taxes related to the disposal.

The disposal is expected to positively impact Naim group’s earnings and earnings per share for the year ending December 2025.

Subject to unforeseen circumstances, the transaction is slated for completion by the second quarter of 2025.

Naim Holdings’ shares closed unchanged at RM1.57, resulting in a market capitalisation of RM786.17 million. Year to date, the counter has gained 93.83%.