KUALA LUMPUR (Oct 31): Malaysia Pacific Corporation Bhd (MP Corp) has proposed to sell 163 sub-divided lots in Johor to Temokin Development Sdn Bhd for RM9.35 million cash or RM35.8 per square foot.

In a statement with Bursa Malaysia today, MP Corp announced that its wholly-owned subsidiary Lakehill Resort Development Sdn Bhd, had entered into a sale and purchase agreement (SPA) on Oct 30 with unlisted property player Temokin on the proposed disposal.

With a net book value of RM6.02 million, the 163 sub-divided residential lots with area measuring approximately 260,938.46 square feet is located on a 17.5 acres freehold agriculture land, it said.

MP Corp said that the gross proceeds arising from the proposal disposal are expected to be utilised for working capital.

Apart from that, MP Corp said that the rationale of the proposed disposal was to realise gain from appreciation in the land value.

It said that the estimated timeframe for the completion would be 90 days from the date of the SPA.

“The proposed disposal is expected to contribute to the earnings of MP Corp for the financial year ending June 30, 2015,” said MP Corp.

Its share price gained 2.5% to close at 41 sen today, giving it a market capitalisation of RM116.5 million.