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Bonia adds prime KL property to its real estate investment arm

KUALA LUMPUR: Bonia Corp Bhd has acquired a prime property worth RM20 million located strategically in the heart of Kuala Lumpur to further increase its source of revenue and income stream from its property investment segment.

In a statement to Bursa Malaysia yesterday, the branded apparel and accessories retailer said its wholly owned unit, Maha Asia Capital Sdn Bhd, yesterday entered into an agreement with Megah Mahajaya Sdn Bhd for the acquisition of the freehold property, a single-storey detached bungalow.

“The acquisition is a good opportunity for the group to potentially enjoy both capital appreciation and rental income.

We think the purchase consideration of RM20 million or RM1,323 per sq ft is reasonable and affordable,” said Bonia.

It said the price was arrived at on a willing-buyer, willing-seller basis, taking into consideration the prices of properties located in the surrounding areas in Jalan Inai, off Jalan Bukit Bintang, and Jalan Tun Razak.

“The acquisition will be partly funded by internally generated funds (25%) and partly financed by bank borrowings (75%),” it added.

Currently, a Japanese restaurant is operating on the premises, and the owner had signed a tenancy agreement dated April 15 this year for a period of three years.

 

This article first appeared in The Edge Financial Daily, on October 31, 2013.

 

 

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