Blumont Group’s indirect wholly owned subsidiary Trackplus has entered a deal to sell a vacant plot of land in Malaysia to Armani Alliance for 20 million ringgit, or around S$6.44 million, in cash, the company said in a filing to SGX Wednesday.
The book value of the property is around S$4.5 million, based on Blumont’s financial statements for the six months ended 30 June, the filing said. But an independent valuation from Firdaus & Associates, which was issued this week, puts the market value of the property at around 28 million ringgit, the filing said.
Blumont said it believes the disposal is in the best interests of the group, noting the property was acquired when it bought its subsidiary Trackplus in 2007 for 13.9 million ringgit, which marks “a very substantial gain or return in the investment after a period of about 14 years.”
In addition, the property currently isn’t generating any revenue, while maintenance costs are being incurred, Blumont said.
The company said the proceeds will be used to expand existing core business areas and explore new business opportunities.
The 7,863 square meter leasehold commercial land, which has a 99-year lease expiring in 2102, is located in Selangor Darul Ehsan, Malaysia, the filing said.
The deal is subject to approval by Blumont Group’s shareholders, the filing said.
Malaysia-based Armani Alliance is involved in installing non-electric solar energy collectors and operating generation facilities to produce electric energy, the filing said.