MQREIT to dispose of property for RM28 million

KUALA LUMPUR (Jan 8): MRCB-Quill REIT (MQREIT) has announced that Maybank Trustees Bhd — as a trustee for and on behalf of MQREIT — has signed a sale and purchase agreement with Transmark Corporation Sdn Bhd for the disposal of a warehouse-cum-office building for RM28 million cash.

Transmark Corporation is principally involved in the trading of fitness equipment.

Meanwhile, the property, known as Quill Building 8 – DHL XPJ, is a single-storey detached warehouse annexed with a three-storey purpose-built office building on freehold land measuring 88,856 sq ft located in Bandar Glenmarie, Selangor.

In a filing with Bursa Malaysia today, MQREIT said the sale consideration for the property was arrived at on willing-buyer willing-seller basis after taking into consideration the RM25 million valuation appraised by Nawawi Tie Leung Property Consultants Sdn Bhd — an independent firm of registered valuers — in its valuation report dated Oct 17, 2017.

“The valuation is derived using investment and comparison method of valuation and is below the disposal price,” it said.

MQREIT is expected to record a net gain of about RM1.28 million arising from the proposed disposal and it will not have a significant impact on the earnings of MQREIT for the financial year ending Dec 31, 2018.

The proceeds from the proposed disposal will be utilized to repay existing borrowings, for asset enhancement initiatives, investments into other yield accretive properties and working capital purposes.

MQREIT said the net proceeds are expected to be utilized within 12 months from the date of completion of the proposed disposal.

The proposed disposal is in line with the objective of MQREIT to regularly evaluate and rejuvenate MQREIT’s property portfolio, according to its announcement.

“The manager has optimized the potential of the property and given the favourable disposal price the sale of this asset,” MQREIT said.

MQREIT’s closed down one sen or 0.82% to RM1.21, giving it a market capitalisation of RM1.3 billion. — theedgemarkets.com

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