Scomi Eng sells industrial complex to Axis REIT

The G2 type monorail that is in the process of being fitted after the body has been sprayed according to the client's requested colours.

KUALA LUMPUR: Scomi Engineering Bhd (SEB) has sold a parcel of industrial land in Sungai Choh, Selangor, and the complex on it to Axis Real Estate Investment Trust (Reit) trustee, RHB Trustees Bhd, for RM42mil and will lease back the properties.

In a filing with Bursa Malaysia, SEB said its indirect unit Scomi Coach Sdn Bhd, which makes commercial coaches and truck vehicles bodies, signed on Monday the sale and purchase agreement and leaseback for the properties -- comprising two single-storey factory buildings with a three- and four-storey office annexe on 61,669 sq metre freehold land.

The monorail train maker said the original cost of the properties was RM45mil.

Their net book value as at March 31, 2016, was RM39mil and the sale would result in a one-off gain of about RM2mil to the SEB group, SEB said.

“The sale of the properties enables SEB to reprofile its payment obligations and to meet the working capital requirements,” the company explained.

The leaseback will be for a period of 15 years, with an option to renew for an additional five years.

The sale of the properties is expected to be completed within four months from the date of the sale and purchase agreement.

In a separate filing, Axis REIT said the agreed monthly rental for the first three years was RM281,647, rising by about 10% for every three-year period thereafter until the rental reached RM412,359 for the 13th to 15th year.