Boustead Plantations to sell 139ha for RM136m
Boustead Plantations Bhd is selling three parcels of land located in Seberang Perai Utara, Penang, for RM136 million.
The combined land area is 139ha, said Boustead Plantations in a statement yesterday.
The company yesterday said it had entered into sales and purchase agreements with Sunrich Conquest Sdn Bhd and Titanium Greenview Sdn Bhd for the disposal of one and two parcels of land, respectively.
The sale consideration was reached on a willing-seller-willing-buyer basis, factoring in the fair market value of the land based on an independent professional valuation, it added.
The sale consideration represents a premium of RM5 million, or four per cent, of the fair market value of RM131 million accorded by the valuer, Jones Lang Wootton.
“This is an ideal opportunity for the group to enhance shareholder value,” said Boustead Holdings Bhd deputy chairman Tan Sri Lodin Wok Kamaruddin in the statement.
“Given the land’s strategic location, which is in close proximity to urban development, the group is able to realise the capital appreciation of the land by disposing of them at a substantial premium over the net book value,” he added.
Boustead Plantations expects a total estimated gain of RM116 million upon completion of the proposed disposal. This translates to a gain of about RM834,000 per ha, which will increase value for its shareholders by seven sen per share.