PROMINENT Mirage (M) Sdn Bhd, a wholly-owned subsidiary of Inch Kenneth Kajang Rubber Public Ltd Co (IKK), has entered into a conditional sale and purchase agreement (SPA) and a conditional leaseback arrangement for the lease of 11.344 acres of industrial land with office building in Mukim Serendah, Ulu Selangor from Concrete Engineering Products Bhd (Cepco) for RM14.875mil.
The two agreements are inter-conditional with one another, IKK said in a statement.
The proposed total purchase consideration will be realised via 20% or RM2.975mil to be paid upon execution of the SPA as deposit and the remaining 80% amounting to RM11.9mil to be paid within 14 business days, subject to conditions.
Prominent will earn RM1.116mil per year from rental proceeds by leasing the industrial land to Cepco.
It will lease the property to Cepco for a rental period of 15 years with the initial rental amounting to RM93,000 per month. The amount would increase every five years by 10%.
The cash inflow has been earmarked for working capital purposes. Prominent said it would also generate additional yearly revenue to IKK for the financial year ending Dec 31, 2004. – Bernama
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