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Glomac To Record RM83 Million Gain From Land Sale
Malaysia Daily Bulletin | 13 October 2015
  • Glomac announced its plan to dispose of a piece of freehold land measuring about 16.9 hectares in Ulu Langat, Selangor, to Perbadanan PR1MA Malaysia for RM145.6 million cash.
  • The sale consideration represents an estimated net gain of RM83.6 million for the firm; the land was purchased for RM18 million back in 2004 and currently has a net book value of RM35.5 million.
  • The group is of the view that the sale will allow it to unlock the potential value of its landbank and generate income, while also increasing opportunity for its immediate and/or future acquisition of more strategic landbank.

Significance: Meanwhile, Hong Long IB Research has maintained its ‘Hold’ call on the stock , noting that the sale price translated to approximately RM80 per square feet (psq), compared to average nearby land transaction of RM100 to RM130 psf, though it has raised its target price from RM0.86 to RM0.89 to account for the gain from disposal.

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