KUALA LUMPUR: Iskandar Waterfront City Bhd
’s (IWCity) subsidiary, Bayou Bay Development Sdn Bhd, has entered into a conditional sale and purchase agreement to dispose of a 6.64-hectare leasehold land in Johor to WB Southern Sdn Bhd for RM71.55 million.
In a Bursa Malaysia filing, IWCity said the proposed disposal is expected to be completed in the third quarter of 2026.
The land, located in Plentong, Johor Bahru, is held on a leasehold basis, with the lease set to expire in 2097.
"As the remaining term of the lease shortens, it is anticipated that the market value of the land will gradually decline, reflecting the diminishing leasehold tenure, unless the lease tenure is renewed.
"The proposed disposal forms part of the group’s ongoing efforts to optimise its asset portfolio and capital structure, aligns with their strategy to strengthen financial resilience, enhance liquidity and redeploy capital into developments and investment opportunities that support long-term growth,” said IWCity.
The group stated that the proposed disposal will allow it to use the proceeds to align with its strategy for funding new project investments and to strengthen the financial position of its existing business operations. - Bernama
