Selangor Dredging associate sells London building for RM86mil

KUALA LUMPUR: Chedstone Investment Holdings Pte Ltd, which is 50% owned by Selangor Dredging Bhd’s (SDB) unit SDB International Sdn Bhd, is selling a four-storey building in London for £13mil (RM86.1mil).

In a filing with Bursa Malaysia on Thursday, the property-based company said its consolidated earnings and net asset would increase by RM6mil while earnings per share would rise by 1.4 sen for the financial year ending March 31, 2016, arisig from the profit.

Chedstone Investment, through unit SDB Guernsey Ltd, was disposing the building at 94 Kensington High St to Luxembourg-incorporated AL.AN SA.

The freehold property is currently let to HSBC Bank Plc on a 15-year full repairing and insuring lease expiring on Feb 20, 2020. The current rental is £410,000 (RM2.72mil) per annum.

The sale consideration was based on the fair value of £11mil (RM72.9mil) as valued by Knight Frank LLP, a firm of independent registered valuer, using the comparative and investment methods, via their valuation report dated March 27.

SDB said the disposal would not have any effect on its share capital and substantial shareholders’ shareholdings and would not have any financial impact on the company’s gearing for the financial year ending March 31, 2016.

None of the directors of SDB, major shareholders of SDB and/or persons connected with them have any interest, whether direct or indirect, in the disposal.