KUALA LUMPUR: Ivory Properties Group's unit Ivory Gleneary Sdn Bhd is divesting a piece of land in Georgetown, Penang to Chin Hin Group Property Bhd for RM40 million.
The land is about 1.218 acres within an existing project known as Penang Times Square.
Chin Hin Group plans to develop the land into a multi-storey serviced residence and has agreed that a company within the Ivory group of companies be appointed as the turnkey builder for the development.
In a filing with Bursa Malaysia Securities Bhd, Ivory Properties said the disposal forms part of its regularisation plan, a critical corporate endeavour for Ivory, along with prospects for future dividend income from share of net profit of the development without actual cash flow as the initial cost of investment.
The turnkey builder work is anticipated to yield construction revenue.
The proposed disposal also entails granting Ivory an irrevocable exclusive right, allowing one of its subsidiary companies to subscribe to up to 20 per cent of the ordinary share capital of Chin Hin.
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