PETALING JAYA: See Hup Consolidated Bhd has entered into a conditional sale and purchase agreement for the disposal of a parcel of land in Seberang Perai Tengah, Penang, to Wangsaga Industries Sdn Bhd and Tek Seng Properties & Development Sdn Bhd for a cash consideration of RM46.96 million, via its wholly owned subsidiary Limsa Ekuiti Sdn Bhd.
According to the group’s Bursa filing, the price of the land parcel was determined based on “a willing-buyer and willing-seller basis” and translates to RM55 per sq ft, and an estimated 3.9% premium over the RM45.2 million market valuation carried out by CH Williams.
See Hup’s estimated net gain arising from the proposed disposal is approximately RM28.05 million, given that its original cost of investment for the property was RM14.7 million.
It stated that the rationale behind the decision is that the market value of the property has appreciated over the year and it is part of its plans to monetise investments in property assets.
The disposal will also allow the group to reinvest the proceeds into its operations and expansion of its core businesses. It revealed that RM36.9 million of the proceeds will be put towards its general working capital, RM5.6 million for repayment of bank borrowings and the remaining will be used to defray the expenses related to the disposal.