PETALING JAYA: Property group Damansara Realty Bhd’s net current liabilities has been reduced by nearly 85%, following the acquisition of 53.14 acres from Johor Corporation (JCorp), the Johor state investment arm.
In a press release yesterday, Damansara Realty said that its associate company, DAC Properties has completed the RM130.3mil-worth land acquisition after receiving the green light from the Economic Planning Unit (EPU) on Nov 22.
EPU’s approval was required to complete the acquisition as the land was state-owned.
The acquisition is part of the proposed RM141.5mil settlement agreement with JCorp, which comprises two land acquisitions by Damansara Realty for RM141.5mil cash, and a land swap.
To date, the property group has already completed the payment of RM130.3mil, leaving a balance of RM11.2mil to be paid.
“With the completion of the acquisition, Damansara Realty has met almost all its obligations under the settlement agreement with JCorp, and the exercise will reduce the group’s net current liabilities by RM132mil.
“The completion will mean a stronger balance sheet for the group, slashing our net current liability to RM23mil from RM155mil before,” said Damansara Realty group chief executive officer Brian Iskandar Zulkarim.
Located in Tebrau, Johor Bahru, the acquired land is part of Damansara Realty‘s 63-acre Central Park, which is currently being developed in partnership with the Hong Kong-listed Country Garden.
The integrated township Central Park is situated within Taman Damansara Aliff along the Pasir Gudang Highway.
“Damansara Realty will still own about 10 acres within Taman Damasara Aliff after Central Park is completed.
“With this landbank acquisition and the good progress on Central Park, the group is on track to strengthen its property development arm,” said Brian.
He also added that the property group is expected to return to the black in its current financial year of 2017 (FY17).
This was following its continuous three years of net losses since FY14.