Hoe Leong Corporation, the manufacturer and supplier of undercarriage components for heavy equipment, announced that its wholly-owned subsidiary Ho Leong Tractors has granted the option to Seng Li Marketing to purchase the group’s factory and office property in Johor Bahru, Malaysia for a consideration of RM10.8 million ($3.4 million).
Seng Li Marketing, an automobile parts and accessories dealer incorporated in Malaysia, has exercised its option on July 13.
The property is the freehold land of gross land area measuring approximately 6,980 sqm, together with one unit of single-storey detached factory with an annexed double-storey office building, one unit of double-storey detached factory with an annexed double-storey office building and other ancillary buildings erected thereon located at No. 16 Jalan Firma 2/1, Kawasan Perindustrian Tebrau 1, 81100 Johor Bahru, Malaysia. The property is currently tenanted to Ho Leong Precision Stamping on a month-to-month basis.
The purchase price was arrived at on a willing-buyer, willing-seller basis, taking into consideration the valuation of the property.
As at Dec 31, 2021, the net book value of the property was $0.6 million. The estimated gain on the disposal of this property is about $2.5 million.
Shares in Hoe Leong closed at 0.2 cents on July 13.
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