Monday 13 May 2013

Malton gets JCorp’s Pusat Bandar Damansara in exchange for VSQ


KUALA LUMPUR: Property developer Malton Bhd is selling a 20-storey office building located in Petaling Jaya to Johor Corp for RM140mil via an asset exchange exercise.
Malton said in a filing with Bursa Malaysia that a sale and purchase agreement was entered into between a wholly-owned subsidiary, Khuan Choo Property Management Sdn Bhd (KCPM), and Bukit Damansara Development Sdn Bhd (BDDSB), a subsidiary of JCorp.
It said the disposal of the property, known as VSQ would see KCPM and BDDSB enter into a “proposed asset exchange”, in which KCPM would acquire the redeveloped Pusat Bandar Damansara Kuala Lumpur (PBD Complex) from BDDSB worth RM140mil.
The consideration of RM140mil was arrived at on a willing-buyer willing-seller basis between KCPM and BDDSB after taking into account several factors including its net book and market values as well as potential future rental returns and capital appreciation of the office space.
As of June 30, the net book value of VSQ properties amounted to RM85.4mil based on the audited financial statements of KCPM while the valuation exercise carried out by CH Williams Talhar & Wong Sdn Bhd recently valued the VSQ properties at a market value of RM140mil.
“KCPM is able to dispose of the VSQ Properties which form substantially the balance development properties in V Square @ PJ City Centre on an en-bloc basis for a development profit of RM54.6mil; and it provides KCPM with an opportunity to invest in the office space under the subject entitlement which has very promising prospects for rental returns and capital appreciation as the property is located in a very prime and strategic location in Damansara Heights, Kuala Lumpur,” Malton said.
According to earlier reports, legal proceedings were begun by companies believed to be linked to Malton and JCorp concerning an old agreement to sell the PBD buildings last October but it is unknown if the legal issues surrounding the properties have been resolved. The case involves three units linked to Malton, which has initiated action against JCorp over a piece of land that the latter was supposed to have sold some years ago.
They demanded that JCorp hand over the land and buildings worth RM700mil.
Since then, PBD has been earmarked as one of the proposed mass rapid transit key stations and indications are that the property is now worth much more.
Source The Star May 14, 2013

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