The government has paid Eden Inc Bhd a total of RM76.86 million in compensation for the acquisition of two of its land plots in Kuantan, Pahang, for the East Coast Rail Link (ECRL) project.
Eden stated in a filing with Bursa Malaysia on Wednesday that it anticipated a gain on compulsory disposals of RM45.84 million as a result of the disposals.
The first plot (Lot 8907) which totals 41.08 hectares, has a 99-year lease expiring on Oct 28, 2096.
According to the filing, the audited net book value as of June 30, 2021, is RM42.89 million.
The 99-year lease on the second plot, Lot 8911, which is 94.62 ha in size, also expires on Oct 28, 2096.
As of June 30, 2021, the audited net book value was RM85.61 million.
Both parcels were purchased by Eden in 2003 and are currently undeveloped industrial land.
Eden claimed that the land hearing held on August 4, 2022, resulted in the decision for the considerable amount of RM76.86 million for both plots based on the information submitted by the company's representatives and Malaysia Rail Link Sdn Bhd (MRLSB).
MRLSB is a wholly-owned subsidiary of Minister of Finance Incorporated, which has been appointed as the asset and project owner of ECRL. The land parcels are being purchased by MRLSB from Eden.
"The compulsory disposals arose as a result of the receipt from the land administrator of the notice to take possession of the lands under Section 18 of the Land Acquisition Act, 1960," Eden said.
Eden claimed that the compensation was conditioned on the amount to be paid to the financial institutions to pay down the loan, in accordance with the charge documents.
"The remaining balance is expected to be used for future business expansion, working capital, and repayment of debts," it said.