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KUALA LUMPUR (March 25): OCR Group Bhd (KL:OCR) entered into a deal on Tuesday with Magna Prima Bhd (KL:MAGNA) to sell 4.58 acres of their 20-acre development property in Section 15, Shah Alam, for RM45 million.
The deal involves OCR Group's wholly-owned unit OCR Avenue Sdn Bhd, Magna Prima's indirect wholly-owned subsidiary Magna Ecocity Sdn Bhd, and another one of Magna Prima's wholly-owned unit Twinicon (M) Sdn Bhd, according to filings from both companies with Bursa Malaysia.
Magna Ecocity is the registered proprietor of the development property following an earlier agreement signed four years ago, while OCR Avenue holds the development rights and power of attorney with full authority to sell a portion of the land.
Tuesday's deal thus involves Magna Prima, via Twincon, purchasing a portion of the 20-acre land owned by the group that is managed jointly with OCR Group.
The original cost of the land was RM36.64 million, with a latest audited net book value of RM40.88 million. The disposal is expected to generate a net gain of RM4.03 million.
Magna Prima, meanwhile, said the acquisition by Twincon forms part of the group's strategic expansion and investment plans, aimed at enhancing its asset portfolio and generating long-term value. The purchase consideration will be funded through internally generated funds and bank borrowings.
The transaction is expected to be completed within six months.
Shares in OCR Group ended unchanged at 4.5 sen on Tuesday, giving the property developer a market capitalisation of RM150.3 million. Magna Prima also closed unchanged at 74.5 sen, valuing the company at RM299.1 million.
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