KUALA LUMPUR, Sept 17, 2025 – Asian Pac Holdings Bhd (KL:ASIAPAC) has announced plans to dispose of a 35.72-hectare freehold land parcel in Semenyih, Selangor for RM87.69 million cash to Kueen Lai Properties Sdn Bhd.

According to its bourse filing, the land disposal is part of Asian Pac’s strategy to strengthen its balance sheet, fund working capital, and channel resources into both ongoing and upcoming developments.

Land Valuation and Pricing

The land, currently vacant, was independently valued at RM91.5 million in April 2025 by Henry Butcher Malaysia (SEL) Sdn Bhd. While the agreed disposal price is 4.2% below market value, Asian Pac said it reflects realistic demand for large land parcels in Semenyih.

Importantly, the transaction still represents a premium of RM66.8 million, or 3.1 times the land’s original acquisition cost of RM20.9 million in 2004.

Financial Utilisation of Proceeds

Asian Pac expects to complete the disposal within three months, with proceeds to be fully utilised within 24 months. Key allocations include:

Working capital support
Funding for current and upcoming developments
Debt reduction
As of June 2025, Asian Pac reported:

Cash & equivalents: RM21.5 million
Total borrowings: RM500.2 million
The disposal is expected to ease liquidity pressure and improve gearing.

Strategic Context

The land sale follows Asian Pac’s August 2025 acquisition of Prestasi Kemas Sdn Bhd for RM42 million from Salcon Development Sdn Bhd (SDSB) and Datuk Ding Pei Chai.
Prestasi Kemas is a property arm of Salcon Bhd (KL:SALCON), and the deal signals Asian Pac’s intent to reinforce its footprint in the Klang Valley real estate market.

Market Impact

Shares in Asian Pac (KL:ASIAPAC) closed unchanged at 9.5 sen on Wednesday, giving the company a market capitalisation of RM141.4 million.
While the disposal will not immediately boost share prices, analysts view the move as part of a longer-term balance sheet strengthening exercise, which could support future development launches.

FAQ

1. Who is buying the Semenyih land?
The buyer is Kueen Lai Properties Sdn Bhd, a private property developer.

2. Why is Asian Pac selling the land below market valuation?
The disposal price is only 4.2% lower than market valuation, which Asian Pac deems reasonable given market demand for large parcels in Semenyih.

3. What will Asian Pac use the funds for?
The proceeds will go towards working capital, project developments, and reducing debt, expected to be fully deployed within 24 months.

4. How does this fit into Asian Pac’s strategy?
The land disposal, coupled with recent acquisitions, indicates a rebalancing strategy—strengthening capital while focusing on Klang Valley growth projects.

5. What is Asian Pac’s current financial position?
As of June 2025:
RM21.5 million in cash
RM500.2 million in borrowings