Zecon to buy RM13.2 million property in Kuching

KUALA LUMPUR: Zecon Bhd has inked a sale and purchase agreement with Effiway Corporation Sdn Bhd to acquire a parcel of 2,340 sq m freehold land together with a nine-storey building in Section 5 KTLD, Jalan Satok, Kuching for RM13.2 million.

Announcing this to Bursa Malaysia Dec 23, Zecon said the proposed acquisition was in tandem with the management’s effort to increase operating efficiency through housing companies of the group under one roof, as far as possible. In addition, there was indication of positive demand for office space in the market, Zecon said.

The property is presently charged to Bank Islam Malaysia Bhd by the vendor, an investment holding company, which acquired the real state on Aug 17, 1999. The original cost and net book value as at Dec 31, 2008 is RM13.294 million.

Zecon said a valuation carried out on the said Property by Rahim & Co on Oct 15, 2009 has put its market value at RM14.24 million.

The individual strata titles for each floor of the building have yet to be issued. The 2nd and 3rd floors of the building have been sold while the ground, 4th, 5th, 6th, 8th and 9th floors are tenanted at RM151,655 per annum. The total lettable space is 2,832.10 sq m, of which about 85% or 2,411.50 sq m is currently tenanted

None of the directors and/or major shareholders of Zecon and, or persons connected with them have any interest, direct or indirect, in the said proposed acquisition.

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