KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) is selling a piece of prime land along Jalan Kia Peng to the Social Security Organisation (Socso) for RM323 million.
The sale would see the company recording a profit of RM56 million.
The infrastructure-property company announced today that its unit Legasi Azam Sdn Bhd had inked a deal to sell the freehold land measuring 1.866 acres to Socso, also known as Pertubuhan Keselamatan Social (Perkeso).
MRCB said the net book value was RM269 million based on the audited accounts for the financial year ended December 31, 2016.
Its market value was RM323 million based on the valuation ascribed by IM Global Property Consultants on February 19, 2018. The original cost of investment was RM267 million, purchased on April 7, 2015.
“The proposed disposal is expected to realise an estimated after-tax gain of approximately RM30 million to the MRCB Group which is expected to improve MRCB Group’s consolidated earnings per share for the financial year ending December 31, 2018,” it said.
MRCB added the proceeds from the sale would be used for the group's working capital (including defraying expenses in connection with the proposed disposal) and property development activities within 12 months from receiving the purchase price.