Ann Joo Resources Bhd’s indirect subsidiary, Gurun Heavy Industrial Park Sdn Bhd (GHIP), has entered into an agreement to dispose of a 62.395-acre parcel of industrial land in Kedah for RM119.59 million as part of the ongoing development of the Gurun Heavy Industrial Park.
The group said GHIP and its joint venture partner, Transyear Sdn Bhd, signed a Sale and Purchase Agreement (SPA) with Zichen Malaysia Sdn Bhd for the sale of Plot 5 within the industrial park.
The land forms part of a larger 160.87-acre freehold industrial site in Gurun, Kedah, which is being jointly developed and marketed under a Joint Venture Agreement (JVA) entered into by GHIP and Transyear in December 2025.
The disposal price translates to approximately RM44 per square foot and was arrived at on a willing-buyer willing-seller basis.
Under the terms of the joint development arrangement, GHIP is entitled to receive RM25 per square foot of the net sellable land area. As a result, the Ann Joo group is expected to receive approximately RM69.2 million from the transaction in stages.
The company said RM33 million of the proceeds will be used to repay outstanding loans within 12 months, while the remaining RM36.2 million will be allocated for working capital purposes, including operating expenses and the settlement of trade and other payables.
Ann Joo said the disposal forms part of the group’s strategy to progressively monetise its industrial land bank through the Gurun Heavy Industrial Park development.
“The disposal enables GHIP, via its joint venture with Transyear, to develop and monetise its industrial land bank progressively,” the company said.
The group added that the transaction is expected to enhance its future cash flow position and improve earnings visibility.
GHIP became part of the Ann Joo group following the progressive acquisition of a 99.99% stake in the company between June 2023 and February 2025.
