KUALA LUMPUR: Ekovest Bhd is disposing of 13 parcels of land near Jalan Pahang, Kuala Lumpur to wholly-owned subsidiary of Lim Seong Hai Resources Sdn Bhd (LSHHSB), Airman Sdn Bhd, for RM66.8 million.
Ekovest said negotiations betweent he two companies were on a willing-buyer willing-seller basis and prevailing market value of the land and zoning and plot ratio of between 3.5 to 4.0 for mixed development and residential, as per the draft Kuala Lumpur Structural Plan 2040 by Kuala Lumppur City Hall (DBKL).
The proceeds from the sale will be used for reduction of debts and for working capital purposes.
In a filing with Bursa Malaysia, Ekovest said the proposed disposal is a related party transaction as its managing director Tan Sri Lim Keng Cheng is a major shareholder and director of LSHHSB.
"The divestment of land is consistent with Ekovest Properties Sdn Bhd's principal business activity as a property investment and development company, enabling the immediate realisation of the land value. "This transaction is anticipated to have a beneficial financial effect to the company, reflecting positively on the overall revenue and cash flow," it said.
The land measuring a total of 12,400.139 square meters is situated in Section 85, Town of Kuala Lumpur and is sited on the left (western) side of Jalan Pahang.
The proposed disposal does not require the approval of shareholders or other relevant authorities.
Barring any unforeseen circumstances, the proposed disposal is expected to be completed in the third quarter of 2024.