Guocoland sells Melaka land to PKNM

KUALA LUMPUR: Property developer GuocoLand (Malaysia) Bhd is disposing off a 500-acre piece of land in Melaka to Perbadanan Kemajuan Negeri Melaka (PKNM) for RM45 million.

In a filing to Bursa Malaysia on Friday, Mar 4, the developer said PKNM had on the same day accepted an offer from Continental Estates Sdn Bhd — a 50% associated company of Guocoland — for the proposed sale of a piece of land in Mukim and District of Jasin, Melaka.

Continental Estates is principally a property development company, and is also engaged in operation of an oil palm estate. PKNM, meanwhile, is a statutory body established under the State Economic Development Corporation Melaka, Enactment No 1, 1971.

"The proposed disposal will enable Continental Estates to realise its investment in the land. The consideration for the proposed disposal will be utilised by Continental Estates for working capital and repayment of borrowings," it added.

The proposed disposal is expected to result in a gain of approximately RM15.07 million to Continental Estates and approximately RM7.54 million to the Guocoland Group, contributing to an increase in the net earnings per share and net asset per share of Guocoland Group of approximately 1.13 sen.

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