Crescendo sells third parcel to Microsoft for RM119.8 mil in Johor

• Crescendo’s wholly-owned unit Panoramic Industrial Development Sdn Bhd inked a sale and purchase agreement with Microsoft's unit Microsoft Payments (M) Sdn Bhd for the land sale, according to the property developer's bourse filing on Monday.

KUALA LUMPUR (Jan 27): Johor-based property developer Crescendo Corp Bhd (KL:CRESNDO) is selling a 22.55-acre piece of land in Pulai, Johor, to Microsoft for RM119.83 million, marking its third land deal since with the global tech giant.

Crescendo’s wholly-owned unit Panoramic Industrial Development Sdn Bhd inked a sale and purchase agreement with Microsoft's unit Microsoft Payments (M) Sdn Bhd for the land sale, according to the property developer's bourse filing on Monday.

The deal values the land at RM1,313.24 per square metre or RM122 per sq ft, which the group noted is within the comparative price per sq ft of its prior land sales in the vicinity since November last year which ranged between RM120 and RM150 per sq ft.

The company said the disposal provides the group the opportunity to unlock the land’s value and generate cash flow for the group’s development projects.

Subject to approvals from relevant authorities, including the Iskandar Puteri City Council and the Ministry of Economy’s Equity Development Division, the land sale is expected to be completed by the second quarter of 2027.

According to Crescendo, Microsoft Payments is principally engaged in the provision of data centre services. This indicates that the data-centre boom is focused on the southern part of Peninsular Malaysia.

This is the third land deal Crescendo has undertaken with Microsoft in Johor since last year. The group completed RM132.47 million and RM115.88 million land sales in May and September last year respectively.

Overall, this is Crescendo’s seventh land disposal since November 2023, when it sold two parcels for RM117.02 million to Singapore-based data centre operator STT GDC Malaysia 2 Sdn Bhd.

Shares in Crescendo ended one sen or 0.72% lower at RM1.37 on Monday, valuing the company at RM1.16 billion. Over the last one year, the company’s share price has gained 44.2%.

The group’s land deals in Johor lifted its profitability more than fivefold for its third quarter ended Oct 31, 2024 to RM103 million compared with RM18 million a year earlier. This translated to earnings per share of 12.28 sen, up from 6.43 sen. No dividend was proposed for the quarter.

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