The Star Online
9th March, 2015
KUALA LUMPUR: Benalec Holdings Bhd is expected to reap RM44.75mil from the sale of 70.46 acres of reclaimed leasehold land in Melaka.
The company said on Monday it was selling the nine parcels of land to Arena Progresif Sdn Bhd for RM128.91mil cash while its land cost was RM84.16mil.
The parcels of land are in Pekan Klebang Seksyen II, Melaka Tengah, about 9.5km due southwest of Melaka City Centre.
“By selling lands, it provides Benalec the opportunity to immediately crystallise the value of its landbank, which will improve the operating cash flow of the company in the future,” it said.
Benalec said the land disposal was in line with the group’s business model to dispose the reclaimed land received from reclamation projects in Melaka which involve settlement in kind for cash either through disposals or joint ventures.
The land disposal would also enable Benalec to raise funds to repay its outstanding indebtedness as well as finance on-going and future reclamation projects and to meet its working capital needs.