IGB sells freehold Gombak land to Ecofirst unit for RM62.8 mil

KUALA LUMPUR (Oct 6): IGB Corp Bhd's indirectly-owned unit Harta Villa Sdn Bhd (HVSB) is selling a piece of freehold land measuring some 10.155ha in Ulu Kelang, Gombak, Selangor, to a wholly-owned unit of Ecofirst Consolidated Bhd, for RM62.8 million.

In its filing to Bursa Malaysia today, IGB said HVSB — a wholly-owned unit of Tan & Tan Developments Bhd, which is in turn a wholly-owned unit of IGB — entered into a sale and purchase agreement today with Ecofirst Development Sdn Bhd (EDSB), to effect the disposal.

HVSB originally entered into an option agreement with EDSB on April 20, which granted EDSB the right to purchase the land at RM62.8 million.

No valuation was carried out on the land, according to IGB's announcement to Bursa Malaysia at the time.

As at Dec 31, 2013, the net book value of the land was RM39.4 million, based on the audited consolidated financial statements of IGB for the financial year ended Dec 31, 2013.

"Given the significant appreciation in the value of the land since it was first acquired in 1994 at a cost of investment of RM36 million, the disposal of the land (assuming the option is exercised by EDSB) represents an opportune time to realise a gain from the investment in the land amounting to RM17.7 million to IGB Group," said the note.

At market close, IGB's shares close flat at RM2.49 with minimal trade of 28,900 for a market capitalisation of RM3.323 billion. -- theedgemarkets.com

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