DutaLand is reviewing the business plans for the Kenny Heights project in Sri Hartamas/ Mont'Kiara, Kuala Lumpur.

KUALA LUMPUR: DutaLand Bhd , which on Monday entered into an agreement to sell almost all of its plantation land to Boustead Plantations Bhd  for RM750mil, plans to use the proceeds to seek new businesses.

In a statement to the stock exchange, the property and plantations group said Bursa Securities might classify DutaLand as a Practice Note 17 company on completion of the disposal of the 42 parcels of land in Sandakan, Sabah.

The board, which intends to maintain DutaLand’s listing status, is deliberating on the new businesses and/or assets to be acquired, it said.

“The board has chosen to retain an adequate level of cash holdings following the proposed disposal to fund potential new investment opportunities, given concerns over the timing and availability of equity and debt funding from the capital markets,” the company told Bursa Malaysia.

“The board has considered the need for DutaLand to have flexibility around the mix of cash and equity funding and depending on the final cash requirements for any potential investment opportunity.”

DutaLand said the proceeds would also be used to fund some of its existing businesses.

“Currently, the board is reviewing the business plans for the Kenny Heights project in Sri Hartamas/ Mont Kiara, Kuala Lumpur, (a joint venture with Olympia Properties Sdn Bhd) and the Duta Grand Hotels which is a mixed development project at the intersection of Jalan Sultan Ismail and Jalan Ampang,” the company said.

The proposed asset disposal is expected to be completed in the first half of 2018.

* See also Boustead to invest RM250mil to boost Sabah estates' yield

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