Shah alam: OCR Group Bhd's indirect wholly owned subsidiary, OCR Avenue Sdn Bhd (OASB), has entered into a sale and purchase agreement with Magna Ecocity Sdn Bhd and Twinicon (M) Sdn Bhd. The agreement involves the disposal of a 1.85-hectare parcel of development land in Shah Alam, Selangor, for RM45 million.

According to BERNAMA News Agency, the real estate company mentioned in a Bursa Malaysia filing that OASB has agreed to sell the land on an 'as is where is' basis, free from all encumbrances, upon the terms and conditions outlined in the SPA. MESB, as the registered proprietor, has consented to OASB selling the land to Twinicon under the terms of the SPA.

The land, part of a larger 17.5-hectare leasehold commercial parcel in Section 15, Shah Alam, will undergo subdivision before the completion of the disposal. OCR stated that the RM45 million consideration was determined based on RM225.56 per square foot on a 'willing buyer, willing seller' basis, aligning with indicative market values. The disposal is expected to generate a net gain of approximately RM4.03 million.

The filing highlighted the rationale behind the disposal as a means to realize part of the gains via the sale of the land, reduce bank borrowings, and maintain a cash reserve to fund the group's developments. The proceeds from the disposal will be used to pare down bank borrowings, fund working capital, and support ongoing developments.

The group indicated that the transaction is not expected to impact its existing business operations or share capital. However, it will positively affect earnings per share for the financial year ending December 31, 2026. Barring any unforeseen circumstances, the exercise is anticipated to be completed within six months.