KUALA LUMPUR: Crescendo Corp Bhd is disposing of a 7.43 hectare five plots of vacant land in Johor Baru to Data Cloud Innovation Sdn Bhd for the development of data centres in Johor.
In its filing with Bursa Malaysia, Crescendo said its subsidiary Panoramic Industrial Development Sdn Bhd (PID) has inked a deal with Data Cloud to dispose of the land for RM120.061 million.
"All those five plots of land form part of the master development known as "Nusa Cemerlang Industrial Park" (NCIP), a light and medium industrial park currently developed by PID," it said.
The net book value of the land, based on audited financial statements as of Jan 31, 2024, was RM19.15 million.
Crescendo said the sale consideration is intended to be utilised for development of the balance landbank owned by the CCB Group and to provide working capital for CCB Group and PID.
"The company is expected to record a consolidated gain after taxation of approximately
RM65.22 million upon unconditional date as defined in the SPA," it said.
According to Crescendo, the disposal is expected to unlock the value of the land at a reasonable price after taking into consideration the marketability and prospects of the land.
It will also help the company to generate cash flows for repayment of the borrowings of the company, it added.
This marks Crescendo's seventh land disposal since November last year, when it sold two parcels for RM117.02 million to STT GDC Malaysia 2 Sdn Bhd, a Singapore-based data centre operator.