Power Root buys JB land for RM25 mil

• Power Root, through its wholly owned subsidiary Alicafe Sdn Bhd (ASB), signed a sale and purchase agreement with GreatEarth Development (Molek) Sdn Bhd on Tuesday (June 27).

KUALA LUMPUR (June 27): Power Root Bhd is buying 116 parcels of freehold residential land, totalling about 771,949 sq ft in Johor Bahru, Johor, for RM25 million in cash.

Power Root, through its wholly owned subsidiary Alicafe Sdn Bhd (ASB), signed a sale and purchase agreement with GreatEarth Development (Molek) Sdn Bhd on Tuesday (June 27).

GreatEarth “was engaged in the activities of builders, contractors and traders in construction and engineering works and property development”, said Power Root.

The company is currently undergoing a winding-up process, overseen by the liquidator Victor Saw Seng Kee of PricewaterhouseCoopers Advisory Services Sdn Bhd.

The directors of GreatEarth are Chang Chew Kient and Fatimah Abdul Sukor.

Power Root said the proposed acquisition, to be funded by internally generated funds or borrowings, will provide a better generation of potential returns on the group’s asset class and expand its revenue base, either by a subsequent disposal or development of the land.

The proposed acquisition, which is expected to be completed within six months of the date of the agreement, will have a positive impact on Power Root’s future financial performance.

Power Root closed up one sen or 0.48% at RM2.11 on Tuesday, giving it a market value of RM1.01 billion.