Euro Holdings' unit to dispose of industrial land in Gombak for RM17.3mil

KUALA LUMPUR: Euro Holdings Bhd's wholly-owned subsidiary Euro Chairs Manufacturer (M) Sdn Bhd has agreed to dispose of industrial land in Rawang in Gombak, Selangor, for RM17.3mil cash.

In a filing with Bursa Malaysia, the group said it had entered into a sales and purchase agreement with TTF Marketing Holdings Sdn Bhd to dispose of the freehold industrial land, measuring 8,094 sqm.

The sale comes together with structures erected on the land, including a double-storey detached factory with an annexed three-storey office building, a Tenaga Nasional substation and a guard house.

According to the group, the property, which was acquired between 1996 and 2004, had an original cost of investment of RM7.8mil, with RM2.1mil being the cost of the land and RM5.7mil for the buildings erected on it.

As at end June 30, 2023, it has a net book value of RM20mil as at June 30, 2023.

The property is currently being occupied as a warehouse.

The group said it is expected to realise a pro forma net loss of approximately RM4mil, based on a disposal amount of RM17.3mil, less the net book value (carrying amount) of RM20mil and less estimated expenses of RM1.3mil.

The proceeds from the sale, which is expected to be completed within four months from the date of the sales and purchase agreement, are to go towards the repayment of borrowings and working capital.