Puncak Niaga to sell two plots of land for RM237m to pare debt, buyer plans mixed development

KUALA LUMPUR (Aug 18): Puncak Niaga Holdings Bhd (KL:PUNCAK) is proposing to sell two plots of land in Bandar Puncak Alam, Selangor for RM237.15 million and proceeds will go towards repaying bank loans.

Under the agreements signed with Alpha Galaxy Sdn Bhd, Puncak Niaga will dispose the 229,717 sq m Lot 7095 and the adjoining Lot 7094, measuring 229,290 sq m, according to an exchange filing. Both lots are largely planted with oil palm trees.

If the deal goes through, Alpha Galaxy will develop mixed properties on the land, Puncak Niaga said.

The disposal will allow it to unlock the value of the assets, which have been held as investment properties since 2015, and generate about RM216.22 million in net proceeds after deducting estimated disposal costs of RM2 million and real property gains tax of RM18.93 million.

As at March 31, 2026, Puncak Niaga’s bank borrowings stood at RM1.05 billion.

The consideration will be settled over 48 months, and the payment period is not contingent on the progress of the planned development, Puncak Niaga noted.

Puncak Niaga also said that it does not intend to develop the lands itself or enter into a joint venture with Alpha Galaxy, as such arrangements would require substantial capital outlay and could further affect its financial position.

Shares of Puncak Niaga were unchanged at 17 sen on Tuesday, giving the group a market capitalisation of RM76.4 million.

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