Thriven Global unit to sell KL bungalow land at a loss

KUALA LUMPUR (April 12): Thriven Global Bhd says its subsidiary is planning to sell a plot of freehold land here to a real estate firm for RM27.5 million, which will result in a loss of some RM11.4 million for the company.

The land belongs to its 51%-owned unit Mulpha Argyle Property Sdn Bhd, it said, which has inked a sale and purchase agreement with the purchaser Mount Well Sdn Bhd yesterday for the sale of the plot, which measures 10,226 sq m.

No valuation was carried out in relation to the proposed sale, it said in a stock exchange filing yesterday, though it explained that the price was arrived at after taking into consideration the market value of the land given prevailing property market conditions.

The sale will raise net cash proceeds of about RM19.85 million, after repaying some RM7.12 million to lenders to redeem and discharge the land, which will be used to finance Thriven Group's capital expenditure and working capital.

The property developer originally invested RM30.75 million into the plot in 2007, which it had intended to develop six units of high-end bungalows, a plan it has since scrapped to redeploy the resources freed to focus on its existing developments and affordable housing projects and shop units in Kepong; Behrang, Perak; Kulim, Kedah; and Penang.

As at Dec 31, 2016, the land had a net book value of RM38.38 million.

It added that the proposed land sale will not have any effect on the share capital and substantial shareholdings of Thriven.

Thriven’s shares closed down half a sen or 1.75% at 28 sen yesterday, giving it a market capitalisation of RM105.5 million. — theedgemarkets.com

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