Seacera Tiles disposes of land

KUALA LUMPUR: Seacera Tiles Bhd is disposing of its freehold parcels measuring 14.59 acres, together within a factory building on it, for RM62 million.

In a filing to Bursa Malaysia on Friday, Jan 28, it said that it had on the same day entered into a sale and purchase agreement with Syarikat Fu Yuen Sdn Bhd for the disposal of lands and building, excluding plant and machineries, fixtures and fittings, to be satisfied by cash consideration of RM43 million and an exchange of a 7½ storey building known as Wisma Fu Yuen, in Jalan Ipoh valued at RM19 million.

"Upon completion of the disposal, the company intends to enter into a tenancy agreement with the purchaser to rent the property for a period of three years with an option to extend for another year," it added.

The parcels consist of warehouse, supplementary buildings and a block of 1-storey detached factory complex.

"The sale and leaseback will enable Seacera to unlock and realise the value of the land whilst providing a surplus net cash flow of approximately RM42 million. It is also expected to improve Seacera's balance sheet in terms of reducing the gearing level of the company," it added.

In the medium term to long term, the company noted that the sale and leaseback supports Seacera's strategy and intention of relocating its existing manufacturing operations on the property to a new land purchased at Kamunting Raya Industrial Estate, Perak.