Berjaya Food to acquire two commercial units in Berjaya Times Square for RM15.67

KUALA LUMPUR (Dec 23): Berjaya Food Bhd has announced that it plans to acquire two freehold commercial units for a cash consideration of RM15.67 million, or at RM650 per sq ft.

In a filing with Bursa Malaysia on Wednesday, Berjaya Food said its wholly-owned subsidiary Berjaya Starbucks Coffee Company Sdn Bhd (BStarbucks) has entered two separate sale and purchase agreements with Berjaya Times Square Sdn Bhd (BTS), a wholly-owned subsidiary of Berjaya Assets Bhd for the proposed acquisition of the units located on Level 10, Berjaya Times Square in Jalan Imbi, Kuala Lumpur.

Berjaya Food said BStarbucks is currently renting the commercial units as its head office, and that the proposed acquisition will enable BStarbucks to own the property to mitigate any future hike in rental cost as well as to benefit from any future appreciation in the longer term.

According to Berjaya Food, the property comprises two commercial units of which substantial portions were subdivided into six office lots and are currently tenanted to BStarbucks and other party as their offices.

It added that the property was completely developed by BTS in 2003 and has a net carrying value as at June 30, 2021 of about RM9.77 million.

Berjaya Food noted that the consideration for the proposed acquisition will be funded via internally-generated funds of BStarbucks, and is expected to be completed in the first quarter of 2022.

Meanwhile, Berjaya Assets in its exchange filing said the gross cash proceeds of about RM15.67 million arising from the proposed disposal will be utilised by the group for repayment of borrowings and for working capital.

Berjaya Assets also noted that the proposed disposal represents an opportunity for the group to realise its investment in the property business.

Shares of Berjaya Food were last traded at RM1.99, giving the group a market capitalisation of RM720.86 million, while Berjaya Assets ended unchanged at 26 sen, giving the group a market capitalisation of RM665.15 million.

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