KUALA LUMPUR, June 19 — SP Setia Bhd’s indirect wholly-owned subsidiary, Petaling Garden Sdn Bhd, has inked three inter-conditional sale and purchase agreements (SPAs) with Mah Sing Group Bhd’s wholly-owned subsidiaries for the disposal of approximately 202.34 hectares of freehold land in Semenyih, Selangor for RM392.04 million.
The subsidiaries are Elite Park Development Sdn Bhd, Grand Prestige Development Sdn Bhd and Mestika Bistari Sdn Bhd.
In a filing with Bursa Malaysia today, SP Setia said the disposal is in line with its strategic plan to improve capital efficiency by monetising its identified land banks and is aligned with its long-term plan to move towards an asset-light structure.
It said the sale consideration would be used for investment into strategic project developments as well as debt reduction.
The property developer said it is expected to realise an estimated gain on disposal of approximately RM31 million, boosting the cash balance of the group shall increase by approximately RM278 million, upon completion.
It added that the estimated timeframe for completion would be the second quarter of 2024.
— Bernama
