The consideration is higher than the net tangible asset (NTA) value of both properties at RM224.3 million as at June 30.
Centurion has entered into sale and leaseback agreements with Kumpulan Wang Persaraan (Diperbadankan) or KWAP, Malaysia’s public sector pension fund. The agreements involve two of Centurion’s Malaysia assets, Westlite Bukit Minyak and Westlite Tampoi.
On Dec 4, Centurion announced that its indirect wholly-owned subsidiaries, Westlite Dormitory (Bukit Minyak) Sdn. Bhd. and Westlite Dormitory (Tampoi) Sdn. Bhd. entered into sale and purchase agreements (SPAs) with KWAP. The properties will be purchased by KWAP for a cash consideration of RM227.0 million ($65.2 million). The consideration for Westlite Bukit Minyak is RM81 million while the sum for Westlite Tampoi is RM146 million. The market value of the properties is RM227.0 million based on a valuation report by Savills Malaysia. The report was commissioned by Centurion Dormitories Sdn Bhd (CDSB) and is based on the income approach taking into account the 15-year master lease of the properties.
