KUALA LUMPUR (Jan 10): Ivory Properties Group Bhd signed an agreement on Wednesday to proceed with its disposal of a 1.22-acre (0.49-hectare) freehold land in George Town, Penang to Chin Hin Group Property Bhd for RM40 million.

The plot forms part of the Penang Times Square development, and will be used to develop a multi-storey residential project.

The two groups on Dec 7 last year signed a binding term sheet for the deal, which will also see a member of the Ivory group appointed as the turkey builder for the development.

Ivory said in a bourse filing that the disposal is part of its regularisation plan, and will also provide future dividend income from its share of net profit of the development without actual cash flow as the initial cost of investment.

“The turnkey builder work is anticipated to yield construction revenue amounting to approximately RM150 million for the subsidiary of Ivory,” the group added.

Ivory expects to secure a net gain of RM11.84 million following the disposal, and intends to use the proceeds to repay bank loans, and to finance its working capital.

Chin Hin, in a separate filing, said the acquisition of the land from Ivory is in line with the group's strategy to source for new land bank and expand its property development segment.

The group said that given the strategic location of the land, it is confident that the development will contribute positively to earnings of the group in future.

The acquisition is expected to be completed by the first quarter of 2025, it added.

Shares in Ivory Properties settled unchanged at seven sen on Wednesday, giving the group a market capitalisation of RM34.31 million.

Chin Hin closed 1.5 sen or 1.79% lower at 82.5 sen a share, valuing the group at RM499.36 million.

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