KUALA LUMPUR: Puncak Niaga Holdings Bhd is selling three parcels of land in Ijok for RM306.1 million at a loss of RM22.4 million, as part of its strategy to monetise its landbank.
In a filing with Bursa Securities, the company said the total purchase price for the land was arrived at RM43.00 per square feet (and RM20.00 per square feet for 20,234.3 square metres of buffer zone only in respect of one plot of land), which represents a discount of RM2.00 per square feet from the fair value of the lands as at December 31, 2022.
Puncak Niaga said the purchase price was arrived at based on a willing buyer willing seller, and on an as is where is basis after arm's length negotiations.
In the filing to the bourse, Puncak Niaga said it plans to use RM200 million of the proceeds to repay bank borrowings and for future investments; RM83 million for general working capital; RM21.3 million for taxes and the remaining monies for expenses in relation to the proposed disposal.
Puncak Niaga intends to utilise the proceeds over a period of 53 months.
The company entered into three separate sale and purchase agreements withAlpha Galaxy Sdn Bhd and Alpha Galaxy 1 Bhd for the deals. The companies are controlled by Abdul Hamid Bawal.
The proposed disposals are expected to be completed by the first quarter of 2028.