Dynaciate Group Proposing Sale Of Penang Land And Building For RM80 Million

Dynaciate Group Berhad is proposing to sell off a freehold land with buildings for a total cash consideration of RM80 million to CapitalLand Malaysia

In a filing with Bursa Malaysia, Dynaciate said that its wholly-owned subsidiary Ingenieur EPCM Sdn Bhd had entered into a conditional sale and purchase agreement with MTrustee Berhad, a trustee of the real investment trust known as CapitaLand Malaysia Trust for the disposal of the freehold land together with buildings erected located in Daerah Seberang Perai Selatan, Pulau Pinang

The RM80 million disposal consideration will be largely utilised by Dynaciate for its property business amounting to RM57.5 million. The rest will be utilised for general working capital (RM13.0 million), repayment of bank borrowings (RM9.3 million) and defray estimated expenses (RM200,000).

Commenting on the latest corporate development, Dyanaciate Group Berhad Executive Director Melvin Lim said: “In undertaking the Proposed Penang Property Disposal, the Board has considered that the market value of the property has appreciated significantly over the years and that this decision provides a timely opportunity for Dynaciate to unlock the value and monetise its investment in the subject property. From this disposal, the Group is able to realise a net gain of approximately RM19.8 million.

Although the property is currently tenanted and we take cognisance of the loss of rental income, the Group is of the view that it can potentially derive better yields and capital appreciation from multiple property investments as compared to receiving rental income and further capital appreciation from said property alone.”

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