Mara Inc sells Melbourne office building

KUALA LUMPUR: Mara Incorporated Sdn Bhd (Mara Inc), a subsidiary of Majlis Amanah Rakyat (Mara), has completed the sale of its commercial office building on 51 Queen Street in Melbourne, Australia, for RM76.75 million (A$23.4 million).

The sale was via an open tender.

Mara chairman Tan Sri Annuar Musa said the tender was completed in August 2016 and was handled by Colliers International, a renowned property agent in Melbourne.

He also said the sale of the building, acquired in 2014 at cost of A$21 million, would help settle Mara Inc's debt with two banks in Australia.

Annuar said this at a press conference on the first sale of its property in Australia in Kuala Lumpur on Tuesday.

He said the sale is part of Mara Inc's rationalisation with the approval of the Treasury and Ministry of Rural and Regional Development.

"The approval was given based on two conditions, namely that it is done at a profit and be used to settle all debts with both banks in Australia.

"The loans from the banks is termed as short term and put pressure on Mara Inc to settle within the stated period," Annuar added.

The Queen Street property is one of four owned by Mara Inc in Australia, and comprises 12 floors of office space, as well as a modern commercial lot on the ground floor.

According to Annuar, the remaining three properties in Australia with a combined asset value of more than A$80 million will be retained as investments for the future.

"The move to sell is in line with Mara Inc's long-term investment strategy, including at other locations in Melbourne and London. Mara Inc is now financially sound and needs no injection of funds from Mara," he added. - Bernama