KUALA LUMPUR (Aug 13): Kitchen cabinet manufacturer Signature International Bhd (KL:SIGN) is selling two parcels of freehold land within an industrial park Techpark @ Enstek Phase 2 in Negeri Sembilan for RM25.7 million cash or RM59 per sq ft.

The company said in a bourse filing on Monday that the proceeds of the land disposal will be utilised to pay intercompany loan and bank borrowings. It estimated to register a gain of RM3.71 million.

The group said it bought the 10 acre land for RM14.24 million back in 2014, which are not used for any of the group’s business operations and are non-core assets.

“The land was acquired in 2014 for future development of a new manufacturing facility that was expected to take up approximately 28-acres of space, with the remaining land held for long term investment purposes.

However, the expansion plan did not materialise and as such, the parcels of land remained vacant, Signature said.

The sale is expected to be completed by the first quarter of 2025.

At Tuesday’s closing, shares in Signature International closed up one sen or 0.8% to RM1.28, giving it a market capitalization of RM826.24 million.