Crescendo unit disposes of Johor land for RM315.17mil

KUALA LUMPUR: Crescendo Corp Bhd said its wholly-owned subsidiary Panoramic Industrial Development Sdn Bhd (PID) has inked a deal with Microsoft Payments (Malaysia) Sdn Bhd to dispose of 2.63mil sq ft of vacant freehold land in Pulai, Johor, for RM315.17mil cash.

The properties are located within a prime and mature industrial estate in Pulai and surrounded by a mix of residential, commercial and industrial developments, the company said in a stock exchange filing.

Of the lands, 881,098 sq ft have been designated as agricultural land while 1.42 million sq ft fall under the industrial category, and a remaining 325,470 sq ft comprise open space and reserved road.

By comparing recent land transactions and the asking prices of similar nearby property, Crescendo said the lands have an estimated market value of RM315mil as at Oct 10, 2023, and an audited net book value of RM40.56mil as at Jan 31, 2023.

PID paid an original cost of investment of RM26.19mil on the properties on Dec 14, 2009, which increased to RM40.56mil with the inclusion of subsequent transaction and development costs.

Crescendo said the disposal consideration was negotiated on a "willing-buyer willing-seller" basis and the company is expecting an estimated net gain on disposal of RM171.92mil, after stripping out related tax and expenses.

The net cash proceeds of the proposed disposal is expected to be RM278.27mil, which PID will put towards the repayment of loans and borrowings, funding ongoing projects, working capital and estimated expenses from the proposed disposal.