Crescendo disposing of industrial land in Kota Tinggi for a gain of RM109m

• The cost of investment of the land, including land acquisition cost, other development and finance cost capitalised up to Jan 31, 2025 was RM12.26 million. This means that Crescendo stands to record a pro forma gain of RM109.03 million on the disposal.

KUALA LUMPUR (Aug 29): Crescendo Corporation Bhd (KL:CRESNDO) said on Friday that it has entered into an agreement with MSFusion Sdn Bhd for the disposal of freehold industrial land in Kota Tinggi, Johor, for RM263.2 million.

In a bourse filing, Crescendo said it acquired the land measuring 52.54 acres in June 2001. At RM263.2 million, the land is valued at RM115 per sq ft.

The cost of investment of the land, including land acquisition cost, other development and finance cost capitalised up to Jan 31, 2025 was RM12.26 million. This means that Crescendo stands to record a pro forma gain of RM109.03 million on the disposal.

In recent years, Crescendo has been a prime beneficiary of demand for land in Johor from data centre investors.

Between November 2023 and May 2025, Crescendo sold seven parcels of land in Johor to data centre players, involving proceeds of RM1.03 billion. Including the latest transaction, the value of Crescendo’s land deals have come to RM1.3 billion over the three-year period.

Besides generating cash for the group, Crescendo said that the disposal allows the group to unlock the value of the land at a reasonable price after taking into consideration the marketability and prospects of the land.

The disposal would boost Crescendo’s net profit to RM635.53 million, from RM526.32 million as of Jan 31, 2025, with earnings per share expected to rise to 75.67 sen from 62.68 sen.

The disposal is subject to approvals from various relevant authorities to permit the use of the land for the development and operation of a data centre, the group said.

Crescendo shares closed unchanged at RM1.24 on Friday, valuing the group at RM1.05 billion. Year to date, the counter has declined by 19%.

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