The divestment will be satisfied part cash with the company set to receive RM63 million, said managing director Ahamad Mohamad in statement today.
The remainder will be via the issuance of 42.9 million new units of Al-Aqar KPJ Real Estate Investment Trust (REIT) at an issuance price of RM0.98 per unit.
Ahamad said Kulim had opted to dispose its investment in Menara Ansar as it would allow the group to unlock the value of its non-core assets as well as realise its investment in the property.
"The divestment will allow us to utilise the proceeds for repayment of borrowing, which currently stands at RM1.7 billion, and lower our gearing from 0.33 times to 0.32 times," he said.
On the Al-Aqar REIT, which is the world's first listed Islamic REIT and Asia's first healthcare REIT, Ahamad said it would be a good investment for the group as it has been providing stable and respectable dividends for the last two years.
As at Dec 31, 2009, Al-Aqar has an existing fund size of 518.37 million units with current assets totalling RM49.81 million and a real estate portfolio of RM961.5 million.
Kulim has accepted the offer to dispose Menara Ansar from AmanahRaya Trustees Bhd, which is the trustee of Al-Aqar REIT. The transaction is scheduled to be completed by the third quarter this year.
Menara Ansar, built on 9,739 square metres of freehold land, is a 21-storey office space with a three-level basement car park. To date, it has an occupancy rate of 92 per cent.
By Bernama
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