KUALA LUMPUR: Benalec Holdings Bhd expects to realise a net gain of RM34.93 million from the completion of separate agreements its units have entered for the disposal of land and joint venture for a mixed property development.
In a statement June 1, Benalec said its subsidiaries Sentosacove Development Sdn Bhd and Orientalcove Realty Sdn Bhd had entered into a sale and purchase agreement and joint venture agreement with Vista Selesa Development Sdn Bhd, respectively.
It said Sentosacove would to dispose of six parcels of leasehold land measuring 151,191 sq meters (1.6 million sq ft) in Klebang Besar, Melaka for RM45.6 million (of which a total of RM40.6 million will be satisfied in cash) to Vista Selesa.
Its other subsidiary, Orientalcove as the landowner, has entered into a JV agreement with Vista Selesa for the proposed development of a mixed development project.
Under this agreement, Benalec is estimated to be entitled to approximately RM37.8 million or 25% of the gross development value (GDV), whichever is higher.
Benalec said Orientalcove's entitlement would be paid in cash within two years from the date of the agreement.
The total combined land area is approximately 125,450 square metres or 1.35 million square feet.
Benalec group managing director Vincent Leaw commented the transaction indicated that the land around the area was in great demand.
He said it was a milestone achievement as it showed that the company had come full circle from land reclamation, adding that Benalec was keen in building value for the land it had reclaimed.
'This project will be an avenue for us to create this value, as the development of these few parcels of land will create spin-off and generate more interest in the adjoining plots of land.
'We are optimistic that the value of the joint venture will increase the value of the land when it's completed,' he said.
Leaw said the proceeds from the agreements would be used to finance the ongoing projects and to meet the capital requirements of the group.
In a statement June 1, Benalec said its subsidiaries Sentosacove Development Sdn Bhd and Orientalcove Realty Sdn Bhd had entered into a sale and purchase agreement and joint venture agreement with Vista Selesa Development Sdn Bhd, respectively.
It said Sentosacove would to dispose of six parcels of leasehold land measuring 151,191 sq meters (1.6 million sq ft) in Klebang Besar, Melaka for RM45.6 million (of which a total of RM40.6 million will be satisfied in cash) to Vista Selesa.
Its other subsidiary, Orientalcove as the landowner, has entered into a JV agreement with Vista Selesa for the proposed development of a mixed development project.
Under this agreement, Benalec is estimated to be entitled to approximately RM37.8 million or 25% of the gross development value (GDV), whichever is higher.
Benalec said Orientalcove's entitlement would be paid in cash within two years from the date of the agreement.
The total combined land area is approximately 125,450 square metres or 1.35 million square feet.
Benalec group managing director Vincent Leaw commented the transaction indicated that the land around the area was in great demand.
He said it was a milestone achievement as it showed that the company had come full circle from land reclamation, adding that Benalec was keen in building value for the land it had reclaimed.
'This project will be an avenue for us to create this value, as the development of these few parcels of land will create spin-off and generate more interest in the adjoining plots of land.
'We are optimistic that the value of the joint venture will increase the value of the land when it's completed,' he said.
Leaw said the proceeds from the agreements would be used to finance the ongoing projects and to meet the capital requirements of the group.
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