Encorp disposes and acquires office suites in Kota Damansara

KUALA LUMPUR: Encorp Bhd is disposing of selected office suites located within Encorp Stand, a mixed development in Pusat Perdagangan Kota Damansara via its subsidiary Must Ehsan Development Sdn Bhd (MEDSB), to parties related to Encorp for RM39.5 million.

The Group made this announcement on Thursday, Sept 23 along with the notice of acquiring from MEDSB a block of offices located in Encorp Strand for RM18.4 million.

“MEDSB is principally involved in the property development. The sale of properties under the Encorp Strand development project and other properties to external and/or related parties are considered to fall within the ordinary course of business of MEDSB,” the Group said. “The purpose of Proposed Acquisition is to meet Encorp’s office space requirement in line with its business expansion.”

MEDSB is a 70%-owned subsidiary of Encorp Must Sdn Bhd, a wholly owned subsidiary of the Group. The Encorp Strand development is located on two parcels of leasehold lands with total land size measuring 45.6 acres.

The disposal will add to revenue and profit margins, while the sales will provide cash flow to the Group.