PJD sells KL tower for RM220mil

PETALING JAYA: PJ Development Holdings Bhd (PJD) has entered into a sale and purchase agreement with Able Starship Sdn Bhd to dispose of a 28-storey office tower in Kuala Lumpur for RM220mil cash.

The property group said in a filing with Bursa Malaysia that it saw the proposed disposal as timely, allowing it to unlock the value of the property in view of the prevailing favourable market prices for property sales.

“Furthermore, the disposal will enhance the financial position of the group as it stands to receive a cash inflow of RM220mil.

“The proceeds would be channelled towards working capital and repayment of bank borrowings, and are envisaged to be fully utilised within one year from the completion of the disposal,” it said.

PJD’s original cost of investment for the building was RM129.2mil, while the audited net book value as at June 30, 2013 was RM116.2mil.

The disposal was expected to realise a net gain of about RM101mil, representing an earnings per share of some 22 sen per share.

“In addition, the gearing of the group would also drop as the proceeds would be partially utilised towards the repayment of bank borrowings.”