Magna Prima to sell land in PJ at RM4m loss

• Magna Prima said the disposal consideration of RM65 million was arrived at after taking into account the negative net current liabilities of RM68.7 million based on the audited financial statements of 33 Sentral Park as at Dec 31, 2022.

KUALA LUMPUR (Aug 4): Property developer Magna Prima Bhd is selling its entire equity interest in loss-making 33 Sentral Park Sdn Bhd, which owns two pieces of adjoining residential land measuring a total of 6.9 acres and fronting Jalan Gasing in Petaling Jaya, Selangor, to Glomics Holding Sdn Bhd (GHSB) for RM65 million.

Magna Prima said the proposed disposal is expected to result in a loss on disposal of RM3.73 million for the group for the financial year ending Dec 31, 2023.

In a bourse filing on Friday (Aug 4), Magna Prima said the disposal consideration of RM65 million was arrived at after taking into account the negative net current liabilities of RM68.7 million based on the audited financial statements of 33 Sentral Park as at Dec 31, 2022.

Magna Prima had on Friday entered into a sale and purchase agreement (SPA) with GHSB for the proposed disposal.

The two pieces of land are currently charged to OSK Capital Sdn Bhd for a loan granted to Magna Prima's wholly owned subsidiary Crossborder Team (M) Sdn Bhd. The outstanding loan payable to the lender is about RM15 million.

Magna Prima said the proposed disposal will enable the group to exit a business area that is not considered as strategic and synergistic to its other operations, and at the same time to focus on its core businesses.

"Thus, the proposed disposal is viewed positively to provide a timely opportunity for the group to immediately unlock and realise the value of the investment and assets in 33 Sentral Park," it said.

Magna Prima plans to use the proceeds from the proposed disposal to fund the group’s existing businesses, as well as future business expansions and/or any prospective businesses.

Barring unforeseen circumstances, the proposed disposal is expected to be completed in the five months from the date of the SPA.

Magna Prima shares closed up 1.5 sen or 3.8% at 41 sen on Friday, giving it a market capitalisation of RM162.53 million.

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