KUALA LUMPUR (April 9): Gabungan AQRS Bhd, a construction and engineering service provider as well as niche property developer, said its subsidiary is selling a piece of land for RM50.38 million to help reduce its gearing.
In a bourse filing, the company said its 52%-owned unit, Prestige Field Development Sdn Bhd (PFD), is disposing of the land in Petaling, Selangor, to Stratmont Development Sdn Bhd.
It said the sale, which is expected to result in a gain of RM14.7 million, is in line with its de-gearing exercise to strengthen its financial footing and raise funds as working capital and repayment of PFD’s bank borrowings.
Gabungan AQRS said the land holds a 99-year lease expiring in 2112 under the “building” land use category. Measuring 7.98 acres (3.23ha), it forms part of a larger piece of land held under a master title.
The company said the sale is subject to PFD applying for subdivision and obtaining the individual title within six months. PFD is also to apply for the consent to transfer within six months from the issuance of the individual title, failing which a three-month extension will be granted.
Gabungan AQRS said the land sale is expected to have a positive impact on its net assets and net assets per share for the financial year ending Dec 31, 2016, as well as its earnings and earnings per share.
This article first appeared in The Edge Financial Daily, on April 7, 2016. Subscribe to The Edge Financial Daily here.
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