OCR Unit To Dispose Of Shah Alam Land For RM45 Mln

KUALA LUMPUR, March 24 (Bernama) -- OCR Group Bhd’s indirect wholly owned subsidiary, OCR Avenue Sdn Bhd (OASB), has entered into a sale and purchase agreement with Magna Ecocity Sdn Bhd and Twinicon (M) Sdn Bhd.

The agreement is for the disposal of a 1.85-hectare parcel of development land in Shah Alam, Selangor, for RM45 million.

In a Bursa Malaysia filing, the real estate company said that OASB has agreed to sell the land on an “as is where is” basis, free from all encumbrances upon the terms and conditions as set out in the SPA.

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“MESB, as the registered proprietor, has consented to OASB selling the land to Twinicon in accordance with the terms of the SPA,” it said.

The land, which forms part of a larger 17.5-hectare leasehold commercial parcel in Section 15, Shah Alam, will be subdivided before completion of the disposal. 

OCR said the RM45 million consideration was based on RM225.56 per square foot on a “willing buyer, willing seller” basis and aligned with indicative market values and the disposal is expected to generate a net gain of about RM4.03 million. 

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The filing said that the rationale for the disposal is to realise part of the gains via the sale of the land, enable the group to pare down some of its bank borrowings, and enable the company to have some cash reserve to fund the developments of the group.

Proceeds from the disposal will be used to reduce bank borrowings, fund working capital and support ongoing developments. 

The group said the transaction is not expected to affect its existing business operations or share capital, but will have a positive impact on earnings per share for the financial year ending Dec 31, 2026 and barring unforeseen circumstances, the exercise is expected to be completed within six months. 

-- BERNAMA