PETALING JAYA: KUB Malaysia Bhd is selling its KUB.com building in Kuala Lumpur to Park Residence Development Sdn Bhd for RM86.5mil as it seeks to unlock the value of the asset and also use the proceeds to repay its borrowings.
KUB said yesterday its unit KUB Realty (PJ) Sdn Bhd had signed the sale purchase agreement with Park Residence to dispose of the office tower at Megan Phileo Avenue, which includes shoplots and car parking bays.
It said the property had 20 shoplots/offices with total lettable space of 198,000 sq ft. KUB and tenants occupy the tower and the total rental income is about RM6.17mil annually.
“The property is currently charged to CIMB Bank Bhd, the vendor’s financier as security for a loan granted to the vendor,” it said.
KUB said an independent professional valuer, Messrs CH Williams Talhar & Wong, had assessed the market value of the building at RM85mil in May 2006 based on comparison method.
KUB Realty acquired the property on Dec 17, 1999 at RM62.37mil. The net book value of the property, including renovation, as at Dec 31, 2006 was RM70.72mil.
It said based on the audited consolidated financial statement as at Dec 31, 2006, the proposed disposal was expected to improve the KUB group’s net assets per share by about two sen.
KUB is involved in information and communications technology, the energy sector and also the fast-food business.
By The Star
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