MK land sells 9 plots land for RM 72M.

(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


PETALING JAYA: Property developer MK Land Holdings Bhd is planning to sell some RM200mil to RM300mil worth of land in Perak and the Klang Valley before the end of its June 30, 2013 financial year to pare down debts and for working capital purposes, said group chief executive officer Lau Shu Chuan.

“We are close to selling some of our land. We have identified the land for sale in Perak, in Damansara Damai and another plot of land in the Klang Valley.

“From the proceeds, we will use some for debt and some for working capital. From there, we can also increase dividends to our shareholders,” said Lau.

MK Land currently has some 2,023ha with a book value of RM1bil, with some 1,214ha of that in Perak.

As of Dec 31, 2012, MK Land had long-term borrowings of RM83.87mil and short-term borrowings of RM66.52mil. It has cash and cash equivalents of RM105.36mil.

Yesterday, Saujana Triangle Sdn Bhd, a subsidiary of MK Land, held a sneak preview of its three-storey semi-detached property known as The Rafflesia @ Hill.

Consisting of 106 units with a total gross development value of some RM350mil, it is located on a 7.28ha site with a central neighbourhood hill park and next to the 3.24ha landscaped Rafflesia Park.

“The first phase to be launched will have 36 units and piling works will begin next month. Once we commence works, the project should be completed within two years. So the entire development will probably take some three years, depending on when we launch the other two phases,” said MK Land head of development Charles Duncan.

MK Land senior general manager Krishnamoorthy said that the concept of The Rafflesia @ Hill would be something like Desa Parkcity in Kepong which was inspired by nature. The size of the semi-detached properties ranged from 4,500 to 5,010 sq ft, with prices starting from RM3.4mil.

Currently, MK Land still has some 101ha of undeveloped land in its flagship Damansara Perdana, where it plans to develop condominium villas, commercial developments and bungalow lots.

MK Land’s developments have a revised net asset value of some RM2, and this is a huge discount to its share price of approximately 32 sen.

“It is more of a reputational issue we suffer from. We have been in the black and recording growth in the last few years. All our launches are completed ahead of schedule. In fact all our legacy issues have been resolved,” Lau said.

Back in 2008, MK Land was facing one of its most challenging periods. It was during that financial period that it posted its first-ever net loss of RM60.9mil.

The company suffered from serious cashflow problems and was not able to service its bonds on time. Work on its projects also came to a halt.

While the company has since cleaned up and posted profits every year since 2008, the issues of the past still persist.

For the second quarter to Dec 31, 2012, MK Land’s net profit increased 33.62% to RM8.54mil on the back of a 14.2% jump in revenue to RM112.25mil.



Author: bintangku

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