KUALA LUMPUR: Atlan Holdings Bhd (AHB) has proposed to sell seven land parcels in Penang for RM145 million cash, resulting in a net gain on disposal of RM80 million or 33 sen per share for the financial year ending Feb 29, 2012, it announced to Bursa Malaysia on Friday, Nov 19.

The group – via its units Blossom Time Sdn Bhd (BTSB) and Radiant Ranch Sdn Bhd (RRSB) – has entered into two separate sale and purchase agreements (SPA) with Utara Malaya Realty Sdn Bhd (URSB).

The parcels in question are six pieces of freehold land measuring a total of about 43.95 acres that belong to BTSB as well as one 17.1-acre plot of land owned by RRSB.

Four of the parcels owned by BTSB have been partially developed, it said.

BTSB has started work on The Residences@Ferringhi Park (Phase 1) and gated and guarded residences Tropika Feringghi (Phases 2 and 3).

Phase 1, which was completed in 2008, comprises 54 units of three-storey semi-detached homes and three units of three-storey bungalows.

Meanwhile, BTSB has obtained overall planning for Phase 2 on Jan 12 this year, and a business financing-i facility totaling RM70 million was obtained from a financial institution, of which RM30 million was drawn down to part-finance the development cost of phase two.

Phase 2B comprises 50 units of three-storey bungalows with an estimated gross development value (GDV) of RM179.1 million and a gross development profit (GDP) of RM70.4 million, while phase 2C is expected to comprise 45 units of thee-storey bungalows with a GDV of RM168.2 million and a GDP of RM55.6 million. Phase 2A is not part of the disposal.

The phases are expected to begin in 2011 and the duration of the project is estimated at five years.

The group said it will use RM125 million from the disposal proceeds to repay bank borrowings and reduce its interest expense, thereby boosting its earnings per share to 33 sen.


SOURCE: The Edge Property