KUALA LUMPUR (Nov 13): UEM Sunrise Bhd is disposing of a property in Melbourne for A$107.09 million (RM304.13 million).
The group said its wholly-owned subsidiary UEM Sunrise (St Kilda Road) Pty Ltd (acting as a trustee and on behalf of UEM Sunrise (St Kilda Road) Unit Trust), is selling the asset to Acme Co. No 4 Pty Ltd.
“The proposed divestment allows UEM Sunrise to immediately unlock the value of the property at a gain in line with market value, and free up the cash to enable the group to pursue other investments and venture opportunities,” it added in a filing with Bursa Malaysia.
The disposal, it added, is expected to be completed by the end of the year and give rise to an estimated net gain on disposal of RM54.32 million (A$19.12 million).
UEM Sunrise said the property was acquired in May 2016 for A$58 million.
The property is located at a strategic corner site of St Kilda Road and Bowens Crescent, one of the main arteries into the Melbourne Central Business District and flanked by a mix of office, residential and mixed-use towers.
The site currently accommodates a 21-storey building with panoramic views overlooking the Royal Botanic Gardens to the north, Fawkner Park to the north-east and Albert Park, as well as Port Philip Bay to the south and south western aspects, according to the group.
Shares price of UEM Sunrise closed half a sen or 0.66% lower at 75 sen yesterday, giving the group a market capitalisation of RM3.4 billion.