MMC sells Senai land

PETALING JAYA: Conglomerate MMC Corp Bhd is selling three parcels of land totalling 188.7 acres in Senai Airport City, Johor, to IPark Development Sdn Bhd for RM370mil.

Proceeds from the sale will help its unit Senai Airport City Sdn Bhd (SACSB) speed up development in the area and pare down group debt.

SACSB, which owns 2,718 acres in Senai, is the master developer of Senai Airport City. The area surrounding the Senai airport is being developed into an integrated industrial zone.

“Local and international investors from Singapore, the United States, Japan and South Korea have seen the benefits of investing in our property projects in Senai Airport City and we are now experiencing unprecedented interest from other international investors,” said MMC managing director Datuk Seri Che Khalib Mohamad Noh in a statement.

IPark Development is a unit of Johor-based AME Group which has interest in property, construction, engineering and IT services.

MMC told Bursa Malaysia that it had entered into a sale and purchase agreement with IPark Development yesterday.

Proceeds from the land sale would also be used for the working capital of MMC and provide funds for future acquisitions of land banks.

Under the agreement, Senai Airport City will build the associated and basic infrastructure such as the sewerage drainage and utility services.

“The proposed disposal will result in an estimated gain of RM153.5mil to MMC,” the company said.

MMC has already cut down its debt and has a healthier balance sheet post-Malakoff Corp Bhd listing.

The listing had a major impact on MMC’s balance sheet, removing RM18.2bil worth of debt because its 51% stake has been reduced to 38% and it no longer needs to consolidate the debt.

MMC has been keeping its growth momentum in check as it recently bought a 9.08% stake in logistics and port operator NCB Holdings Bhd for RM186.5mil, to maintain its position as a key player in the ports industry in Malaysia.

Meanwhile, its MMC-Gamuda joint venture, which will be the frontrunner for the Mass Rapid Transit line 2 tunnelling, should provide at least a further RM6bil in new orders.

AllianceDBS Research said it understood that the company would also bid for the Sabah portion of the Pan Borneo Highway project.

It said MMC had adopted the strategy of listing its key businesses, starting with Gas Malaysia Bhd in 2012 and Malakoff in 2015, to unlock value.