Farlim to rake in RM10.74 mil gain from Perak land sale

• The land disposal is to unlock the value and monetise its investment at a premium of a 28.65% or RM7.35 million premium to the RM25.65 million market value ascribed by its valuer, Henry Butcher.

KUALA LUMPUR (Sept 24): Farlim Group (Malaysia) Bhd (KL:FARLIM) is disposing of a leasehold housing scheme in Gopeng, Perak for RM33 million in cash.

With a net book value of RM21.58 million, the group is expected to book a proforma gain of RM10.74 million, said the property company in a bourse filing.

The land disposal is to unlock the value and monetise its investment at a premium of a 28.65% or RM7.35 million premium to the RM25.65 million market value ascribed by its valuer, Henry Butcher, it added.

Spanning across 96.8 acres, the land housing scheme comprises 1,170 pieces of residential plots, 31 pieces of commercial terraced plots, three TNB substation plots as well as reserve land for infrastructure, utilities, amenities and services.

Farlim (Perak) Sdn Bhd has entered into a conditional sale and purchase agreement with Gabong Holdings Sdn Bhd for the land disposal. Gabong’s shareholders are OPL Holdings Sdn Bhd and Team Keris Bhd. 

The proceeds of RM32.32 million from the property disposal will be used for the acquisition of new land bank, while the remaining RM680,000 is to defray the expenses related to the disposal.

The proposed disposal is expected to be completed in the first half of 2025. Affin Hwang Investment Bank has been appointed as the principal adviser for the proposed disposal.

Farlim’s share price settled half a sen or 2.4% higher at 21 sen, bringing the group a market capitalisation of 35 million.

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