PROPERTY development and construction group Lum Chang Holdings has sold a site in Malaysia for RM77.2 million (S$31.5 million) and expects a net gain of about $7.6 million.
The company said yesterday that a subsidiary signed the sales and purchase agreement with Malaysia-incorporated Scenic Point Development to dispose of the plot of land in Kuala Lumpur. The site is located in the city centre area and measures 40,612 sq feet. The selling price works out to around RM1,900 per sq foot. Lum Chang had bought the land to develop a high-rise block of serviced apartments on it. The offer for the land allows the company to ‘realise its investment and further fund its other developments in Malaysia’, it said.
The deal is expected to be completed in December and Lum Chang expects to make a net gain of around $7.6 million, to be reflected in the
current financial year ending June 30, 2010.
Lum Chang shares rose half a cent higher yesterday at 31.5 cents. This is more than two-and-a-half times the counter’s price in March, when it sunk to a low of 12 cents.
Last month, Lum Chang reported a 22 per cent year-on-year drop in net profit to $11 million, for the year ended June 30. Earnings weakened despite a 21 per cent increase in revenue to $227 million. The company said then that it expects the construction industry’s prospects to remain positive. In June, it obtained a $452.4 million contract from the Land Transport Authority to design and build the Bukit Panjang MRT station.
The group has interests in construction as well as property development and investment, both in Singapore and overseas.
Source : Business Times – 9 Sep 2009
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