Trive Property sells assets at a loss for working capital

KUALA LUMPUR (March 22): Trive Property Group Bhd is disposing of a 2.5-acre piece of leasehold land and a factory building at the Kulim Hi-Tech Park in Kedah for RM4 million.

The group stands to incur a loss of about RM891,820 from the sale, as the net book value of the property is RM4.84 million and estimated expenses for the transaction is about RM50,000.

“The transaction is expected to have a negative effect on the group’s earnings for the financial year ending Jan 31, 2019, as a result of the loss on disposal,” Trive Property said in a filing with Bursa Malaysia.

The group said its wholly-owned subsidiary ETI Tech (M) Sdn Bhd has entered into a sale and purchase agreement with Frisian Biosciences Sdn Bhd for the disposal of the land and the 3-storey detached factory building.

Both properties have a 30-year lease that is expiring on Dec 25, 2034.

Trive Property said the disposal was arrived on the price offered by Farisan according to prevailing market value to which ETI Tech has agreed to accept on a “willing buyer, willing seller” basis after taking into consideration the current economic situation.

It added the transaction provides an opportunity for ETI Tech to realize the property which has not been utilised and expected the transaction to be completed within nine months.

Trive Property’s share price closed 0.5 sen or 14.29% higher at four sen yesterday, giving the group a market capitalisaiton of RM81.73 million. —

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