Equine Capital sells Petaling Land for RM28mil

KUALA LUMPUR Equine Capital Bhd (ECB)'s wholly-owned subsidiary Taman Equine (M) Sdn Bhd today entered into a sale and purchase agreement with Tanjung Balai Sdn Bhd for the disposal of a leasehold land for RM28 million.

In a statement, it said the 4.72-hectare land in Mukim Petaling, Selangor, was categorised as building land zoned for commercial use.

It is charged to a local bank as part of the security of the ECB Group for a term loan facility.

The land, acquired in 1994 at RM260,168, was revalued to RM8.7 million upon the listing of ECB in 2003 and further revalued to RM28.8 million as at March 2009.

The land had been leased to Aeon Co (M) Bhd and the lessee had erected a building known as "Aeon Taman Equine Shopping Centre".

The annual lease rental currently payable under the lease agreement is RM1.5 million.

ECB said the proposed disposal was in line with the group's business strategy of disposing non-core assets to streamlime the business operations.

Of proceeds, ECB said, RM10 million would be used to repay bank borrowings and the balance as working capital for its property development activities.

Tanjung Balai Development is involved in property development and investment holdings.

By AP