Al-Aqar sells Johor Bahru properties
KUALA LUMPUR (Nov 14): Al-Aqar Healthcare REIT is selling commercial properties in Johor Bahru for RM100 million to Optimum Impress Sdn Bhd. Al-Aqar will use the sale proceeds to cut debt and finance working capital and future acquisitions.
In a statement to Bursa Malaysia today, Al-Aqar's manager Damansara REIT Managers Sdn Bhd said the sale involved disposal of freehold land with a 27-storey hotel and 31-storey office block. The hotel is known as Hotel Selesa, while the office block is known as Metropolis Tower.
Damansara REIT said Al-Aqar signed the sale and purchase agreement with Optimum Impress for the all-cash deal.
"The proposed disposal will enable Al-Aqar to realise the value of its investment in Hotel Selesa Tower and to utilise the proceeds for repayment of bank borrowings, working capital and/or future acquisition(s)," Damansara REIT said.
Damansara REIT said Al-Aqar's original cost of investment in these properties was RM87.2 million on May 15, 2009. As at Dec 31, 2015, the properties had a collective net book value of RM103.5 million.
At Bursa Malaysia today, Al-Aqar shares had not been traded so far. Last Friday (Nov 11), Al-Aqar shares closed at RM1.55 for a market value of RM1.13 billion. — theedgemarkets.com
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