KUALA LUMPUR: Boustead Plantations Bhd is selling three parcels of land at Seberang Perai Utara, Penang for RM136 million.
The combined land area comprises 139 ha, Boustead Plantations said in a statement yesterday.
The company today said it had entered into sales and purchase agreements with Sunrich Conquest Sdn Bhd for the proposed disposal of one parcel of land and Titanium Greenview Sdn Bhd for the proposed disposal of two parcels of land.
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 over the fair market value of the lands of RM131 million accorded by the valuer, Jones Lang Wootton.
“This is an ideal opportunity for the group to enhance value for shareholders,” its vice chairman Tan Sri Lodin Wok Kamaruddin said in the statement.
“Given the strategic location of the land which is in close proximity to urban development, the group is able to realise the capital appreciation of the lands 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 into a gain of about RM834,000 per ha, which will increase value for its shareholders by seven sen per share.