Protasco Bhd is selling of three plots of commercial land in Johor for RM16.72 million to pare down its existing term loan and generate additional cash flow for the company.
It is selling the land, measuring about 2.68ha in total to NSK Property Sdn Bhd.
Protasco’s wholly-owned unit Sun Rock Development Sdn Bhd had inked a sale and purchase agreement with NSK Property for the sale, it said in a stock exchange filing yesterday.
“Given the current slowdown in the property market and the economy in general, we foresee the demand for developed properties to remain weak for the coming years,” it said.
Protasco, the main developer of De Centrum City, a RM10 billion 40ha freehold project in the Kajang-Serdang province acquired the three plots in Johor in October 2013 for RM13.66 million.
The company said the disposal would give it a one-off gain of some RM3.07 million.
Protasco said the disposal price was calculated at RM57.9 per square foot and it is considered to be a fair price given the current market conditions and the limited demand at the locality.