Benalec

Its unit has entered into a S&P for the disposal of 22 piece of commercial land for a total consideration of rm235 million.

This development is positive as the disposal is done before the reclamation process, enabling the group to immediately crystallize the value of its land bank, hence improving its cash flow.

The land disposal is line with the group’s business model in selling a portion of the reclaimed land, which improves a settlement in kind for cash. This also provides an avenue for Benalec to raise funds to repay its borrowings as well as finance ongoing and future reclamation projects.

The disposal will reduce its net gearing ratio to 0.05 times from 0.06 times.

Expect to be a few more disposals in the immediate future…