Equine Capital to sell shopping centre site

KUALA LUMPUR: Equine Capital Bhd, the master developer of Taman Equine in Seri Kembangan, is selling the site where AEON Taman Equine Shopping Centre is erecting at, to Tanjung Balai Development Sdn Bhd for RM28 million.

Its wholly owned subsidiary Taman Equine (M) Sdn Bhd had on Dec 17 entered into a sale and purchase agreement with Tanjung Balai Development for the disposal of the 11.81-acre commercial land.

The land is currently leased to Aeon Co (M) Bhd under a lease agreement dated Jan 10, 2005. The annual lease rental currently payable under the lease agreement is RM1.5 million.

The land is contiguous with another parcel of leasehold land measuring approximately 10.05 acres which was disposed of to Tesco Stores (Malaysia) Sdn Bhd on April 2 this year.

In a filing to Bursa Malaysia on Dec 17, the land, which has been classified as an investment property, was disposed of to fit into Equine Capital’s business strategy of disposing non-core assets to streamline business operations.

Proceeds from the disposal will be utilised to reduce partially the group’s borrowings and to provide working capital for property development activities. The reduction of borrowings will assist in lowering interest costs to the group as well as improving the group’s gearing position.