Mulpha sells shopping centre, marina in Australia for RM233m

• "The sale proceeds from the proposed disposal are intended to repay bank borrowings associated with the property, with the remainder to be utilised by Mulpha International group as part of its business activities."

KUALA LUMPUR (Feb 4): Mulpha International Bhd (KL:MULPHA), which in recent years has slimmed down its property portfolio in Malaysia to focus on its activities in Australia, has now decided to dispose of a shopping centre along with its associated marina in Queensland, Australia.

The proposed disposal of the Capri on Via Roma property for A$85.5 million (RM233.42 million) is part of Mulpha International's capital recycling initiative aimed at strengthening its cash flow and streamlining its asset portfolio, said the company in a bourse filing on Monday.

"The sale proceeds from the proposed disposal are intended to repay bank borrowings associated with the property, with the remainder to be utilised by Mulpha International group as part of its business activities," it said.

Located on the Isle of Capri, a prestigious neighbourhood just southwest of Surfers Paradise on Australia's Gold Coast, the property comprises a retail and commercial complex with a marina. The site spans 11,280 square metres for the shopping centre and 583 square metres for the marina.

The proposed sale is being executed through Mulpha Capri Retail Pty Ltd, a trustee for Capri Retail Trust, an indirect wholly owned subsidiary of Mulpha International.

The disposal, expected to be completed in the second quarter of 2025, is subject to regulatory approvals in Australia and the fulfilment of contractual conditions. The buyer, Capri Holding GC Pty Ltd, is a trustee for the Capri Trust.

Mulpha International anticipates a net gain from the sale after deducting related expenses, with the property having an audited net carrying value of A$82.8 million as at Dec 31, 2023.

According to the group, the sale will positively impact its earnings per share, net assets, and gearing for the financial year ending Dec 31, 2025.

Capri on Via Roma, originally constructed in the 1960s and redeveloped between 2011 and 2013, boasts over 95% occupancy as of January 2025. The marina component, however, operates under a leasehold tenure expiring in 2032.

As of end-September, Mulpha International has total borrowings of RM2.19 billion and cash and deposits of RM334.97 million, giving it a net debt position of RM1.86 billion. Its net gearing ratio stood at 54.9%.

EdgeProp.my is currently on the lookout for writers and contributors to join our team expansion. Please feel free to send your CV to [email protected]. 

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!