KUALA LUMPUR (Feb 6):  Gabungan AQRS Bhd's wholly-owned subsidiary Nusvista Development Sdn Bhd is selling its leasehold land in Mukim Sungai Buloh, Petaling Jaya for RM55.69 million cash.

Nusvista today signed a sales and purchase agreement with Gadang Construction Sdn Bhd, according to the construction and property firm.

It said the land size measures 10,779 sq m, equivalent to 2.66 acres or 116,024.19 sq ft. At a price tag of RM55.69 million, this means that Gadang Construction is buying the land at RM479.99 per sq ft.

With interest in earthworks, building and civil engineering contractor activities, Gadang Construction is the wholly-owned subsidiary of Gadang Holdings Bhd, which is listed on the Main Market of Bursa Malaysia.

In a filing with the local bourse this evening, Gabungan AQRS said the move to sell the land is part of its ongoing monetisation programme to raise funds.

Gabungan AQRS said the proceeds from the sale of the land may be used to repay bank borrowings, which is part of its de-gearing exercise to strengthen its financial footing. It also said the proceeds may be used as working capital to fund its construction works.

Gabungan AQRS, currently has an order book of around RM1.7 billion.

“The board of directors, having considered all aspects of the proposed sale of land, is of the opinion that the proposed sale of land is in the best interests of Nusvista and the company,” Gabungan AQRS said in a statement, adding that it expects to complete the transaction by the third quarter of its financial year ending Sept 30, 2017 (FY2017).

Gabungan AQRS acquired the 99-year leasehold land in November 2009, with original cost of investment of RM38.29 million.

The leasehold period will expire in another 91 years on May 13, 2108.

As at Dec 31, 2016, the land had a net book value of RM38.58 million.

Gabungan AQRS expects the sales of the land to yield a gain RM11.66 million, net of tax.

“The Proposed Sale of Land is expected to have a positive impact on the earnings and earnings per share of the company for FY2017,” it said, adding that the sales of the land will reduce its gearing level as well.

Meanwhile, Gabungan AQRS also noted that it has plans to dispose of 19.13 acres of leasehold land in Sepang to government-owned PR1MA Corp, which it expects to complete by the end of the first quarter ending March 31, 2017.

At the same time, Gabungan AQRS also said it is still looking for a purchaser for 5.16 acres of land in Puchong, Selangor.

Gabungan AQRS shares ended its trade at RM1.01 today, giving it a market capitalisation of RM394.29 million.