Majuperak Holdings Bhd is disposing of three parcels of leasehold land in Daerah Kinta, Perak for RM27.31 million to fund on-going projects, among others.
Its wholly-owned subsidiary Syarikat Majuperak Bhd has inked an agreement with property developer, Keris Properties Holdings Sdn Bhd for the proposed disposal of the parcels of commercial land measuring a total of 52.67 hectares (including ponds).
In a bourse filing, Majuperak said the proposed disposal provides an opportunity for the group to unlock the immediate value of the land.
Majuperak said the purchase price was derived after taking into consideration the indicative market value of the land ranging from RM19 million to RM24.81 million (excluding the two ponds) as determined by an independent professional valuer.
The first parcel has a value of RM4.7 million. It has a completed drive-through coffee outlet under a tenancy agreement dated 10 July 2013 with a monthly rental of RM18,000.
The other two parcels have commercial properties (three-storey shop offices) with a completed retail outlet and have a collective value of RM4.85 million. The tenancy agreement with the retail outlet dates 21 March 2017 with a monthly rental of RM23,864.
Majuperak said the three properties were being used as payment in kind after considering that they are able to generate recurring rental income.
It expects the proposed disposal to be completed by the fourth quarter of this year.
Majuperak said the board is of the opinion that the land disposal is in the best interest of Majuperak as it will enable the group to raise funds for its working capital requirements.
In line with its Strategic Direction Plan 2019-2023, Majuperak is looking to create sustainable revenue for the group by strengthening its existing core business.
One of the group's core business is in the property and realty sector. Since 1976, it has completed several housing projects across Perak, which includes low cost housing and shop lots.
Among the new ventures are asset and infrastructure management.