Knusford sells commercial plot in Semenyih for RM12m

• The disposal, involving a 4,065 sq m commercial plot with a single-storey building erected thereon, is expected to generate a gain of about RM8.99 million for the building materials and machinery company, after deducting related expenses. Its initial investment in the property was RM2.27 million.

KUALA LUMPUR (March 30): Knusford Bhd is disposing of a freehold property in Semenyih for RM11.9 million cash, proceeds of which will be used for working capital.

The disposal, involving a 4,065 sq m commercial plot with a single-storey building erected thereon, is expected to generate a gain of about RM8.99 million for the building materials and machinery company, after deducting related expenses. Its initial investment in the property was RM2.27 million.

In a bourse filing, Knusford said its wholly-owned unit D-Hill Sdn Bhd had entered into a sale and purchase agreement with Sin Siang Hin (M) Sdn Bhd for the disposal.

The sale price was arrived at on a willing buyer and willing seller basis, following the indicative market value of the land of about RM9 million at RM205 psf, and an estimated current construction cost of approximately RM2.9 million for the building.

Knusford said the disposal, which is expected to be completed in the second quarter of this year, will allow the company to immediately unlock the value of the property and monetise the cost incurred, while improving its cash flow.

Knusford shares were last traded at 58 sen, giving the company a market value of RM57.79 million.