Share
PETALING JAYA (Sept 17): Mieco Bhd has completed the RM57 million sale of two freehold industrial properties in Semenyih, Selangor, to Jin Ye Ye Sdn Bhd.
In a Bursa Malaysia filing on Thursday (Sept 17), Mieco said the disposal by its wholly-owned subsidiary Seng Yip Furniture Sdn Bhd was completed on the same day.
Seng Yip entered into a conditional sale and purchase agreement with Jin Ye Ye on March 19 for the two parcels, identified as PT 30871 and PT 30872 in Mukim Semenyih, Ulu Langat district, together with the buildings on them.
The properties, at Lot 974, Batu 23½, Jalan Sungai Lalang, span approximately 16.93 acres. The detached factory premises have a total built-up area of about 228,632 sq ft, comprising an office, factory, kiln-drying plant and boiler house.
Mieco had previously estimated that the disposal would generate a net profit of RM11.27 million after deducting the properties’ carrying amount of RM40.23 million as at Dec 31, 2024, estimated disposal expenses of RM3 million and estimated real property gains tax of RM2.5 million.
The group had earmarked RM40 million of the proceeds to redeem the properties from its existing financier. The redemption was expected to generate annual interest savings of about RM2 million, based on the prevailing interest rate of 5%.
Another RM11.5 million was intended for working capital, with 80% allocated for the settlement of trade and other payables and 20% for operating expenses, including staff and administrative costs.
The remaining RM5.5 million was set aside for estimated disposal expenses and real property gains tax.
Mieco said the disposal formed part of its asset-rationalisation exercise to reduce borrowings and interest costs, strengthen working capital and improve operational efficiency.
It said the disposal was not expected to materially affect the operations of Mieco or Seng Yip, as activities at the properties would be relocated to other premises within the group.
..........
EdgeProp monthly brings you data, insights and solutions for an evolving market. Subscribe now for your free copy!
