Aeon sells its Mahkota Cheras shopping mall


FILE PHOTO: The logo of Aeon Co is seen on shopping carts at its supermarket in Tokyo January 10, 2013. REUTERS/Toru Hanai/File Photo

KUALA LUMPUR: Aeon Co (M) Bhd is selling the Aeon Mahkota Cheras Shopping Centre and the freehold land on which it sits for RM87.8mil.

In a filing with Bursa Malaysia, the Japanese retail giant’s subsidiary said the proposed disposal to Foremost Wealth Management Sdn Bhd would give it an estimated gain of RM17mil for this financial year ended Dec 31.

The property has a net book value of RM67.4mil for the financial year ended Dec 31, 2016. The two-storey shopping centre building is seven years old.

Aeon said the proposed disposal was in line with its corporate strategy of focusing and developing its future retail business.

The cash proceeds would be used as working capital of the company and to reduce its borrowings, it said.

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