SP Setia subsidiary sells Ampang land for RM53m to Aeon

Posted on | March 13, 2007

By THE EDGE

SP Setia Bhd’s subsidiary Ambleside Sdn Bhd is selling a piece of 5.85-ha leasehold commercial land in Ampang, Ulu Kelang to Aeon Co (M) Bhd for RM53.69 million cash.

SP Setia said on March 13 the proposed disposal would enable it to realise a net gain of RM28 million, based on the audited net book value as at Oct 31, 2006. Ambleside acquired the land in July 2001 for RM12.19 million.

The land is located along Jalan 37/56 and Jalan AU2/8 in Ampang. The lease is for 76 years and expires on April 5, 2083.

SP Setia said the sale was in line with the group’s strategy to divest its non-core property assets that had achieved a good capital appreciation in order to “crystallise” the enhanced value for the benefit of its shareholders.

“The proposed disposal will also enable SP Setia to raise cash for working capital and fund its future expansions,” it said, adding it expected the disposal to be completed in next year-end.

SP Setia expected the disposal to improve the net gearing for the financial year ending Oct 31, 2008.

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