PETALING JAYA: Property developer Selangor Dredging Bhd (SDB) has disposed of 16 plots of vacant freehold land in Damansara Heights to Bukit Selesa Development Sdn Bhd (BSDSB) for RM71mil.
SDB said in a filing to the stock exchange that the disposals will enable the company to unlock capital from being tied to the land and translate them into cash resources for working capital, apart from improving its cash flow position.
It inked the deal with BSDSB yesterday on a ‘willing buyer willing seller’ basis, after taking into consideration the market value of the lands at RM70mil, appraised by VPC Alliance (KL) Sdn Bhd.
According to Selangor Dredging Bhd, it bought the plots of land in August 2005 for RM50.07mil.
The company added that it will not have significant impact on earnings per share, net assets per share and gearing for the financial year ending March 31, 2017.
SDB explained that the disposal consideration of RM71mil is above the audited net book value of the land (RM50.07mil) and its related development expenditure (RM20.8mil) totalling RM70.91mil as at March 31, 2016.
BSDSB intends to develop the land into residential housing, according to the notes.
“The timeframe for full utilisation of the disposal consideration is expected to be within 12 months from the date of receipt of the entire amount from the disposal,” SDB added.
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