PETALING JAYA: Widad Group Bhd
is disposing of a 12-storey office building in Damansara Heights, Kuala Lumpur, for RM41.5mil in cash.
In a filing with Bursa Malaysia, Widad said its wholly owned subsidiary, Widad Builders Sdn Bhd, has signed a sale and purchase agreement with Richfield Builder (M) Sdn Bhd for the disposal.
The office building, which includes six levels of elevated car parks, has a 99-year leasehold expiring on Jan 30, 2073, with 48 years remaining on the lease.
The audited net book value as of Dec 31, is RM39.69mil, while the original cost of investment was RM38mil on Oct 18, 2013.
Widad said the proceeds from the disposal would be utilised to fully settle borrowings related to the property and for working capital.
“The disposal is expected to incur an estimated loss of RM1.2mil, hence reducing net tangible assets accordingly.
“However, gearing will be improved following reduction of borrowings by RM40mil,” it said.
