KUALA LUMPUR (Sept 13): Mah Sing Group Bhd is disposing of 13,695 sq metres of freehold land in Georgetown, Penang for RM66.33 million cash.

In a bourse filing yesterday, Mah Sing said its wholly-owned subsidiary Klassik Tropika Development Sdn Bhd is selling the plot located in Pykett Avenue to Morningjoy Sdn Bhd.

It said the land was acquired by Klassik Tropika in 2009 for a proposed high-end condominium development, and is currently free from all encumbrances, besides predominantly flat and vacant.  As at June 30, 2022, the land’s net book value is RM61.85 million.

Man Sing said the disposal of the land is in line with the group’s strategy to focus more on its “M-Series” type of residential land for development of affordable properties that are in line with current market demand.

“Disposal of the land and replacement with M-Series lands with faster turnaround time will help optimise efficiency of the group’s landbank. The proceeds unlocked from the monetisation of the undeveloped land will free up cash for utilisation by the group for future land acquisitions.

“As the loan facility for the land has been fully settled, the proceeds from the disposal are expected to enhance the cash and bank position of the group,” it added.

Mah Sing expects to generate a gain of  RM1.8 million upon completion of the sale in the fourth quarter of 2022, after deducting all estimated expenses for the exercise.

Source: PropEdge, 13 September 2022