KUALA LUMPUR: Selangor Dredging Bhd will seek shareholders approval for the disposal of a piece of freehold commercial land in Kuala Lumpur for RM480 million in cash during its upcoming extraordinary general meeting on Sept 29.

The land would be sold together with its headquarters, Wisma Selangor Dredging, comprising four commercial building blocks and two levels of basement car parks, the property developer said in a filing to Bursa Malaysia today.

“The proposed disposal provides an opportunity for us to unlock and realise our property investment.

“It will enable our company to realise an estimated net gain of about RM93.9 million upon the disposal,” the company said.

Selangor Dredging said RM103 million from the proceeds would be used to finance its ongoing property development projects, namely The Hub, UNA and SqWhere.

It said shifting its focus from investment activities to property development would contribute positively to the group's future earnings.

"The proposed disposal will also enable our group to raise funds to repay part of our group's bank borrowings, which will reduce net gearing from 0.35 times to 0.10 times.

"This will also result in savings on interest and provide our group with the financial flexibility to secure additional borrowings, should new investment and development opportunities arise,” it said. - Bernama

259 reads