KUALA LUMPUR (May 8): MK Land Holdings Bhd is selling off nine parcels of leasehold land in Kamunting, Perak for RM72 million, to improve its financial position.

The group expects to record a net gain of about RM32.14 million from the disposal after deducting disposal expenses, taxes and related costs, the group said in a Bursa Malaysia filing today.

MK Land said its wholly-owned subsidiary Dominant Star Sdn Bhd has inked two sale and purchase agreements (SPAs) with KL Teh Land and Development Sdn Bhd for the disposals.

The first batch comprises six vacant land parcels, measuring approximately 33.56 acres 13.58 hectares), which will be sold off for RM9 million.

In the remainder three land plots which measure a collective 162.28 acres or 65.67 ha, on which a clubhouse, a golf course and a driving range are located, they will be disposed of for RM63 million.

MK Land plans to use RM47 million from the proceeds of the proposed disposal as working capital and the remaining RM25 million for ongoing and future development project expenses.

“The disposal is part of MK Land Group’s streamlining exercise to improve the assets utilisation and overall financial position of the group. The Board is of the opinion that the disposal will improve the group’s overall financial and liquidity,” it added.
 
MK Land settled 1.6% lower at 31.5 sen today, valuing the group at RM379.45 million.