Global Oriental to sell 19-acre Seri Kembangan parcel for RM43.3 mil

KUALA LUMPUR (Aug 12): Global Oriental Bhd is selling a 19.24-acre leasehold tract in Seri Kembangan, Selangor for RM43.3 million cash, according to a report in the digitaledge Daily today.

The group announced to Bursa Malaysia yesterday that its unit Pertanian Taman Equine Sdn Bhd has signed a conditional sale and purchase agreement (SPA) with Kemaris Residences Sdn Bhd for the proposed disposal.

“The proposed disposal is expected to give rise to a net gain of RM15.92 million for the financial year ending March 31, 2017,” said the group in its statement to Bursa Malaysia.

“The proposed disposal will [also] improve the group’s cashflow though realisation of a portion of the group’s investment in development land into cash,” it added.

Global Oriental expects to complete the disposal by April next year.

According to the group, the proceeds from the disposal will be used to repay bank borrowings and for working capital for property development activities.

The group acquired the land in 1994 for RM8,336. The value of the land and its related development expenditure was at RM15.27 million as at March 31, 2015, while the market value was RM42 million based on a valuation performed by independent valuer CH Williams Talhar & Wong Sdn Bhd.