KUALA LUMPUR: Global Oriental Bhd
(GOB) has proposed to dispose of 18 retail units at Pavilion Embassy, Jalan Ampang, for a total cash consideration of RM35mil as part of a move to unlock value and strengthen its balance sheet.
In a filing with Bursa Malaysia, the property developer said its wholly owned subsidiaries, Exceed Concept Sdn Bhd and Pedoman Ikhtisas Sdn Bhd, entered into 18 separate sale and purchase agreements with EZT Property Management Sdn Bhd and Brillion Land Sdn Bhd.
The properties comprise 12 retail units held by Exceed Concept and six units held by Pedoman Ikhtisas.
The disposal consideration was arrived at on a willing-buyer, willing-seller basis and represents a premium over the properties’ latest audited net book value of RM25.2mil and latest valuation of RM25.7mil.
“The proposed disposal represents a strategic opportunity for GOB Group to unlock and realise the value of the Properties.
GOB said RM11.7mil of the consideration will be settled via a contra against outstanding debts, while the remaining RM23.3mil will be paid within 14 days.
“With a disposal consideration of RM35mil, the proposed disposal is expected to generate an immediate net gain of approximately RM7.4mil for the financial year ending March 31, 2026,” GOB said.
It said proceeds from the disposal will be used to offset debts, repay RM10.7mil in bank borrowings, meet tax obligations and fund working capital requirements.
The group expects the transaction to reduce its gearing ratio to 0.74 times from 0.80 times previously and improve overall financial flexibility.
