Gabungan AQRS sells land in Selangor for RM34.7 mil; appoints new chairman

KUALA LUMPUR (March 17): Gabungan AQRS Bhd is selling a piece of land in Petaling, Selangor for RM34.73 million, the proceeds of which will be used to reduce the gearing of the construction and property development group.

Gabungan AQRS had purchased the piece of land for RM19.34 million on Feb 18, 2013. The net book value of the asset stood at RM22.57 million as at Dec 31, 2016.

In a filing with Bursa Malaysia today, Gabungan AQRS said the expected gain from the proposed land disposal is approximately RM6.8 million.

Its 52%-owned subsidiary Prestige Field Development Sdn Bhd today signed a sale and purchase agreement (SPA) with Ara Indah Development Sdn Bhd for the land disposal. The proposed sale comes together with an approved building plan from the Subang Jaya City Council for a commercial development on the land.

"Barring any unforeseen circumstances, the proposed sale of land is expected to be completed within 12 months from the date of the SPA," said Gabungan AQRS.

Measuring 20,861.02 sq m, the piece of land has a 99-year lease that expires on Sept 4, 2112.

"The proposed sale of land is part of the the group’s ongoing monetisation programme where Gabungan AQRS disposes of selected pieces of land to raise funds for working capital for its construction order books of approximately RM1.7 billion, and/or to repay bank borrowings, which is in line with the group’s de-gearing exercise to strengthen its financial footing," said Gabungan AQRS.

As part of the group’s ongoing monetisation programme, Gabungan AQRS also plans to dispose of all land measuring 19.13 acres in Dengkil, Selangor when the master en-bloc purchase agreement is executed with PR1MA Corp Malaysia. This disposal is expected by the end of its first financial quarter ending March 31, 2017.

In a separate filing, Gabungan AQRS said Tunku Alizan Raja Muhammad Alias has been appointed independent and non-executive chairman of the company, replacing Datuk Kamarudin Md Ali who has been redesignated as independent and non-executive director.

Alizan, 50, has 26 years of experience in the legal profession, specialising in the areas of corporate and construction law. He also holds directorships in KUB Malaysia Bhd and Scomi Engineering Bhd.

Gabungan AQRS shares closed up two sen or 1.54% to a one-year high of RM1.32 today, with 2.25 million shares traded. Its market capitalisation stood at RM515.31 million. —  theedgemarkets.com

For more stories, download TheEdgeProperty.com pullout here for free.