Saturday, 15 July 2017

(The Star) Lien Hoe sells Johor land for RM100mil cash

KUALA LUMPUR: Lien Hoe Corp Bhd’s unit is selling 36.4 acres within Bandar Seri Alam, Johor, for RM100.53mil cash to Plato Assets (M) Sdn Bhd.

The property company, in a filing with Bursa Malaysia, said its unit Christine Resort Sdn Bhd had signed a sale and purchase agreement with Plato Assets to sell the land.

Of the RM100.53mil, Lien Hoe will be using RM90.50mil for working capital, business expansion and new investment.

It said the land, which is part of a 182-acre site, was purchased in July 2009 via the acquisition of Christine Resort. The land is a freehold property zoned for commercial buildings.

The land is along Jalan Persiaran Seri Alam within Bandar Seri Alam, 25km north-east of Johor Baru city centre.

Under the agreement, Lien Hoe will build a two-lane road, measuring 580 metres along the southern boundary of the main road.

“Based on the carrying value of the land of RM10.15mil and the related costs amounting to RM36.78mil, the proposed disposal is expected to give rise to a gain of RM53.59mil before tax for the group.

“This translates into an increase in earnings per share of 15.63 sen for the group in the financial year ending Dec 31, 2017,” it said.

Plato Assets’ core business is real estate and the directors are James Ku Man Ning, William Liaw Kok Tjong, Liaw Siu Wen and Shie Poen Liaw.