PETALING JAYA: Property developer Crescendo Corp Bhd will be getting a RM543 million windfall from its proposed disposal of various plots of land in Pulai, Johor, via three transactions over the last 10 days.
It announced today its third land disposal in Pulai for three vacant pieces of land measuring 2.62 million sq ft within the Nusa Cemerlang Industrial Park to a unit of software giant Microsoft for RM315.17 million cash.
It said in a bourse filing its subsidiary Panoramic Industrial Development Sdn Bhd (PID) entered into a conditional sale and purchase agreement with Microsoft Payments (Malaysia) Sdn Bhd for the land, which the purchaser intends to develop a data centre on-site.
On Nov 7, Crescendo announced the sale of seven parcels of adjoining land in Pulai for RM117.02 million to Singapore-based data centre operator STT GDC Malaysia 2 Sdn Bhd. The group said the parcels were acquired in December 2009 for a total of RM15.93 million.
A week later on Nov 15, it announced the sale of nine parcels of land measuring 887,984 sq ft for RM111 million to Yu Ao Sdn Bhd. The plots were acquired between March 2005 and February 2008 at a total investment cost of about RM12.9 million.
With the third land sale, the gross proceeds from the disposals would total RM543.19 million, compared with the costs incurred for acquisition, development and financing of RM69.4 million.
The latest disposal takes into consideration “the challenges in negotiating terms and securing buyers with strong credentials and financial capability to complete the sale of such sizeable land expeditiously”.
“The proposed disposal will lead to value creation for the surrounding lands owned by the group,” the group said.
Proceeds from the latest 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 disposal will require shareholders’ approval at a general meeting as well as the Johor state authority and Iskandar Puteri City Council.
Investors gave the thumbs up to Crescendo, which is 70% controlled by the founding Gooi family, cashing in its chips on its astute land purchases made years ago.
At the close of trade, Crescendo’s shares jumped 26 sen or 18% at RM1.71, its highest in eight years, valuing the group at RM479.6 million.