KUALA LUMPUR: Trinity Corp Bhd disclosed further information to reinforce its stance that the land in Danau Putra sold to the Selangor government was not over-priced.
Trinity chairman Tsen Keng Yam said while the total valuation of the plots of land was RM93.5 million, it sold the tracts to the Selangor government for RM87.7 million, with a RM5.8 million discount. “Hence [it is] not a deal as sweet for Trinity as portrayed or perceived,” he said in a statement yesterday.
The statement follows allegations by MCA Young Professionals Bureau that the Selangor government over-paid Trinity, formerly known as Talam Corp Bhd, for tracts of land to settle the debts that the company owed to the state.
The issue over the Danau Putra land, which is 80% submerged in water, arose after the state allegedly acquired the land at a price of RM43.3 million or RM15 per sq ft, which was higher than the auctioned price of RM15 million.
However, Tsen denied these allegations, which he described as “not wholly accurate”. He said Trinity was unable to make any further statement on the matter as the auction is a matter pending before the High Court of Malaya in Kuala Lumpur.
Notwithstanding, Tsen vehemantly denied that the land was sold above market value through its debt settlement exercise. He added that the valuation of the land was done by an independent and professional valuer and the valuation came under the scrutiny of the Securities Commission’s asset valuation department.
Furthermore, he said the valuation of the submerged land took into account the cost of having to “fill up” the inundated portion amounting to RM51.5 million. “Despite these facts, the land was valued at RM15.98 per sq ft after deducting the RM51.5 million cost of filing, and that worked out to be about RM8.82 per sq ft.
“As to why the valuation, for the purposes of the auction, determined the said land to be at RM5.20 per sq ft is a matter in dispute in court…” he added. He said although the land mentioned appears to be “lacking in value” because parts of it are under water; all the plots have existing purchasers.
“Two of the plots are in the midst of satisfying the terms of the sale and purchase agreement with the state, whereas the land in dispute before the court also has an interested purchaser who has paid an earnest deposit…” he said, adding that the conclusion of the sale is subject to the outcome of the High Court’s decision.
This article appeared in The Edge Financial Daily July 12, 2012.
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