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Tuesday July 17, 2007
KUALA LUMPUR: Rashid Hussain Bhd's (RHB) wholly-owned subsidiary Vision City (M) Sdn Bhd will sell the remaining unsold properties in Bandar Wawasan in Jalan Sultan Ismail to Quill Retail Malls Sdn Bhd (QRM) for RM430mil.
Under the sale and purchase agreement, RHB will dispose of a parcel of land designated for a fourth office block together with an adjacent parcel of vacant land of 397 sq m, a partially completed retail centre with four levels of basement car park and a partially completed apartment block or retail podium with four levels of basement car park.
RHB told Bursa Malaysia yesterday the disposal price took into consideration the audited net book value of the properties as at Dec 31, 2006 of RM392mil and the market value of RM400mil according to an independent firm of chartered surveyors and registered valuers.
The land on which the properties were built was acquired by Vision City in 1995. The total cost of investment of the properties, including the cost of the land as at Dec 31, 2006 was RM433.85mil, it said.
Vision City had in 1996, 2000 and 2005, sold office towers 1, 2 and 3 that formed part of Bandar Wawasan.
The proposed disposal is in line with the intention of Vision City to sell the remaining properties held under the project either on an as is where is or completed basis, if it is able to source for a suitable buyer.
Upon completion of the disposal, Vision City will be liquidated and wound up, RHB added.
About 98% of the cash proceeds received by RHB from the settlement of the inter-company loan by Vision City will be used as working capital.
The proposed disposal will result in a net gain of RM29.2mil, or earnings per share of 4 sen, said RHB.
Subject to approval from the relevant authorities, the exercise should be completed by fourth quarter.
QRM, principally engaged in property investment holding, was incorporated on June 8. Its directors are Datuk Michael Ong Leng Chun and Datuk Low Moi Ing.
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