Sime Darby sells Singapore property for nearly RM250mil

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KUALA LUMPUR: Sime Darby Bhd, which aims to raise RM1.8bil by selling property assets in Australia and Singapore, sold one of its investment properties in Singapore on Thursday for S$82.55mil (RM249.64mil) cash.

In a filing with Bursa Malaysia, the diversified group said Sime Darby Property Singapore Ltd (SDP Singapore), a unit under its wholly-owned subsidiary Sime Darby Property Bhd, had sold off its entire equity interest in Sime Darby Property (Alexandra) Pte Ltd (SDP Alexandra) to Aster Investment Holding Pte Ltd.

Aster is an indirect 25%-owned associate company of SDP Singapore, with the other 75% equity interest being indirectly held by Sedan Holding Ltd. Following the disposal, SDP Alexandra has become Sime Darby’ associate company.

The cash consideration of S$82.55mil is subject to certain additional purchase price adjustments, Sime Darby said without elaborating.

The statement noted that Singapore-incorporated SDP Alexandra was mainly engaged in property investment and management, but it did not say what was its property in the republic. It is believed that SDP Alexandra owns a five-storey light industrial building at Alexandra Road, Sime Darby Business Centre.

In February, Sime Darby president and group chief executive Tan Sri Mohd Bakke Salleh had said the plantations-based group had identified 13 assets in Australia and three in Singapore for the planned asset monetisation.

Sime Darby said Thursday’s disposal would not have any material effect on the earnings or net assets of the group for the financial year ending June 30, 2017.