KUALA LUMPUR (Nov 29): Paramount Corp has proposed to dispose of a 4.7ha piece of land in Pekan Hicom, Section 26, Shah Alam for RM90 million.
The land has a net book value of RM76.7 million as at Dec 31, 2020, and was acquired in 2012 for RM48.42 million, the group said in a bourse filing.
The independent valuation of RM90 million was appraised by Rahim & Co International Sdn Bhd, it added.
The buyer is Goodhart Management Sdn Bhd, whose directors include SKP Resources Bhd chairman and managing director Datuk Gan Kim Huat.
Paramount said RM50 million of the proceeds of the disposal will be used for the repayment of bank borrowings, while RM37.8 million will go towards working capital purposes.
“The proposed disposal is in line with Paramount’s plan to improve the operational performance of its property division by focusing on property developments that are able to generate returns within a shorter turnaround time, particularly in times of economic uncertainty.
“This plan includes monetising some of the group’s land bank that are zoned for commercial use, and utilising the cash proceeds to repay bank borrowings previously taken for the acquisition of residential land as well as to improve cash liquidity for the group’s integrated developments,” it said.
The group expects the disposal to be completed by the first quarter of 2022.
Paramount's share price fell 0.5 sen or 0.7% to 72 sen, giving it a market capitalisation of RM445.82 million.