Malton Berhad sells land in Perak

Malton Berhad has sold a plot of land in Perak, over 1000 acres, to Seni Perinti.

Tuesday heralded an announcement by publicly-listed company Malton Berhad to sell a plot of land to Seni Perintis for just over $7 million.

The land is located in the Malaysian state of Perak and had been considered agricultural land when it was under the control of Malton. Specifically, the land had been under the control of the Perak Fruits & Development Corporation, but that company is 51 per cent owned by Malton Berhad.

The plot, which is 1003.6 acres in size, had already been sold through an agreement that was signed yesterday. As of six months ago, the recorded fair value of the land was about MAR 20.5 million and the actual price at which the sale was conducted was MAR 23 million.

According to representatives from Malton Berhad, there were a number of reasons that made it immediately apparent that selling the land was a very good idea. The primary reason was that Malton did not have any development plants for the land and therefore keeping it under raps when liquidation of the property would give them some extra capital did not seem like a good idea.

Furthermore, Malton Berhad expects to place a net gain of just under MAR 1 million when all is said and done regarding the transaction and they will be able to save approximately MAR 500,000 in tax liabilities that they would have had to pay had they kept the property under their ownership. Overall, that capital will be used as working funds for Malton and also argued in favour of Malton making the sale in order to be able to get it.

This is part of an effort that has been going on for some time by Malton to streamline their operations and get their finances in better shape and it also represents the freeing up of the land that was sold to be developed as part of the expansion of the overall supply available in the Malaysian real estate market.