SGX-listed Versalink has sold its property in Malaysia to Bursa-listed Axis-REIT for a cash consideration of RM41 million ($13.0 million).
On July 12, Versalink’s wholly-owned subsidiary, Jemaramas Jaya Sdn Bhd, accepted a binding letter of offer for the sale of the parcel of land at Lot 6119, Jalan Haji Salleh Batu 5 ½ off Jalan Meru 41050 Klang, Selangor to RHB Trustees Berhad, the REIT trustee.
The property comprises freehold land occupying an area of approximately 24,952 sqm. It is occupied by Versalink’s office, showroom, warehouse and principal manufacturing facility which has a total built-up area of approximately 17,949 square metres.
Based on the valuation report commissioned by Jemaramas, the property’s market valuation comes up to RM41 million as at April 21.
As part of the proposed sale, both Jemaramas and Axis-REIT will enter into a tenancy agreement to enable the former to continue occupying the property after the completion of the sale.
The terms of the tenancy agreement include a fixed tenancy term of three years and a monthly rental of RM220,804.60.
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The proposed sale is said to be in the best interests of the group and its shareholders as it will enable the group to realise the value of the property and improve the group’s cashflow. The proposed sale will also provide additional working capital for the group’s operations.
Following the sale, Versalink will record a net gain of RM22.0 million after deducting the property’s book value of RM17.8 million and estimated expenses.
The estimated net proceeds from the sale after deducting estimated expenses will come up to RM39.8 million.
Shares in Versalink closed flat at 5.5 cents on July 12.
