Crescendo sells third Pulai land for RM315 mil cash

• The disposal consideration is supported by the market value of RM315 million ascribed by the valuer, Crescendo said. It expected a net gain on disposal of RM171.92 million from the exercise.

KUALA LUMPUR (Nov 17): Crescendo Corp Bhd has announced its third land disposal in Pulai, Johor Bahru, this time three vacant pieces of land measuring 2.62 million sq ft for RM315.17 million cash to Microsoft Payments (M) Sdn Bhd.

Crescendo, through its subsidiary Panoramic Industrial Development Sdn Bhd (PID), had earlier this month announced the disposal of two parcels of land for RM117.02 million, and another nine parcels for RM111 million — both near the vicinity of the latest proposed land for sale.

The disposal consideration is supported by the market value of RM315 million ascribed by the valuer, Crescendo said. It expected a net gain on disposal of RM171.92 million from the exercise.

The proposed disposal took into consideration “the marketability and prospects of the subject properties and the challenges in negotiating terms and securing buyers with strong credentials and financial capability to complete the sale of such sizeable land expeditiously”, Crescendo said.

The land is located within the Nusa Cemerlang Industrial Park, and the purchaser intends to develop a data centre on-site, Crescendo filing showed.

“The proposed disposal will lead to value creation for the surrounding lands owned by the group,” it added.

Proceeds from the sale will fund debt repayments (RM95 million), further development of Crescendo’s Bandar Cemerlang project in Ulu Tiram, Johor (RM60 million), working capital (RM111.77 million), development costs to be incurred as part of the disposal (RM36.9 million) and related expenses of the exercise (RM11.5 million).

The sale and related exercise will require shareholders approval at a general meeting, as well as Johor state authority and the Iskandar Puteri City Council.

Crescendo shares traded unchanged at RM1.45 at noon market break, giving it a market capitalisation of RM406.67 million.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!