Crescendo to dispose of JB land for RM132.47mil

KUALA LUMPUR: Crescendo Corp Bhd's wholly-owned subsidiary Panoramic Industrial Development Sdn Bhd (PID) has entered an agreement to dispose of about 102,558.3sqm of freehold industrial land in Pulai, Johor Bahru, to Microsoft Payments (Malaysia) Sdn Bhd for RM132.47mil.

In a filing with Bursa Malaysia, the group said the disposal is on an "as is where is" basis, free from all and any encumbrances and with vacant possession, subject to pre-closing works, post-closing works and other terms and conditions of the sales and purchase agreement (SPA).

According to Crescendo, the land was purchased for RM11.02mil on Dec 14, 2009. As at Jan 31, 2023, the total cost of investment, including transaction costs and development costs incurred and capitalised by PID on the land is RM17.06mil.

Crescendo said it estimates a net pro forma gain of RM80.83mil from the disposal, minus the net book value of the land, expenses, tax and cost of development in relation to the disposal.

The group expects to raise net cash proceeds of RM127.7mil after deducting the estimated expenses related to the disposal.

Of the amount, RM50mil will go towards repayment of loans while RM73.41mil will be utilised for working capital.