Pasdec expects net gain of RM68 mil from Kuantan land sale

• The land, measuring 59.2 acres, is a leasehold land with remaining tenure expiring on Aug 6, 2113. The net book value of the property is about RM3.97 million as at end-Dec 2023.

KUALA LUMPUR (Nov 13): Property developer Pasdec Bhd (KL:PASDEC) is expected to realise an estimated net gain of RM68.38 million from the proposed sale of industrial land in Kuantan, Pahang to Petroluxe Refinery (M) Sdn Bhd (PRSB) for RM73.5 million.

Proceeds received from the proposed disposal will be utilised for working capital purposes for its ongoing and newly launched projects and paring down debts, said Pasdec in a bourse filing.

The land, measuring 59.2 acres, is a leasehold land with remaining tenure expiring on Aug 6, 2113. The net book value of the property is about RM3.97 million as at end-Dec 2023.

PRSB is principally involved in the business of manufacture, export and import of refined petroleum products and warehousing and storage services.

Pasdec said the disposal will enable the group to unlock the value of the property and strengthen its cash flow position.

“The development of the integrated refinery and petrochemical facilities complex on the property will generate multiplier effects to the economy and will potentially create high value employment opportunities and supply chain growth to the nation,”  it added.

The land sale is expected to be completed by the fourth quarter of this year.

Pasdec’s share price closed unchanged at 28 sen, bringing the group a market capitalisation of RM112 million.

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