UOA sells office tower to UEM for RM173.25m

KUALA LUMPUR (Dec 12): UOA Development Bhd is selling an 18-storey office tower to conglomerate UEM Group Bhd for RM173.25 million cash.

In statement to the exchange on Tuesday UOA, a property developer, said the leasehold commercial tower which includes a mezzanine floor to be constructed, is located within the Bangsar South enclave along Jalan Kerinchi here. The property is known as Tower 1, Avenue 7, Horizon Phase 2, according to UOA.

"The proposed disposal allows the company to realise the fair value of its investment property and enables the company to look for potential acquisition of investment property which may provide better yield for the benefit and growth of the company.

"In the interim, the proceeds from the proposed disposal will be put into fixed-deposit accounts with financial institutions," UOA said.

According to the seller, the transaction is undertaken via UOA's wholly-owned subsidiaries Nasib Unggul Sdn Bhd and Paramount Properties Sdn Bhd, both of which have signed an agreement with UEM's wholly-owned unit First Impact Sdn Bhd.

UOA said the sale of the property with a book value of RM130 million will give a disposal gain of some RM32.07 million to the company. Based on the built-up area of approximately 231,000 sq ft for the one-year old building, the selling price of RM173.25 million translates into some RM750 a sq ft.

"Barring unforeseen circumstances, the proposed disposal is expected to be completed within three months from the date of the SPA (sale and purchase agreement)," UOA said.