It expects to gain RM16 million after the sale of two pieces of land along Jalan Batu Ferringhi, Penang for RM33 million cash to Glass Bay Sdn Bhd. The RM16.47 million was arrived at after deducting estimated income tax of RM5.49 million, land cost of RM9.19 million, development cost of RM1.84 million.
It had decided to put off its original plan to build 40 units of ine-storey storey apartments with one-storey basement carpark. The decision to dispose of the land was after taking into consideration the estimated time frame and resources required to develop the land over the next three years given the competition of other developments within the vicinity and long gestation period to reap the full potential and benefits of the land.
The proposed disposal will enable the group to realise disposal proceeds of RM33 million and an estimated after-tax gain of disposal of approximately RM16 million thus unlocking the value of the land immediately upon the completion of the proposed disposal.
The proceeds from the proposed disposal would be used to repay bank borrowings, interest payments and to finance the group’s funding needs.
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