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KUALA LUMPUR: HELP International Corporation Bhd is acquiring a hostel building, HELP Residence, in Damansara Heights for RM50 million.
In a filing to Bursa Malaysia on Dec 28, the company said its wholly owned subsidiary HELP University College Sdn Bhd has on the same day entered into a conditional sale and purchase agreement with Zhao Yang Sdn Bhd to acquire the property sitting on a 1,112-sq m freehold tract .
HELP Residence, which is about two years old, comprises a 21-storey hostel building together with four levels of basement car-park. Its total gross floor area is about 14,117.1 sq m.
The building has 432 rooms, five executive rooms, a reception office, library area, multi-purpose hall and a cafeteria. It is currently rented by HELP University College at a monthly rental of RM343,933.
The net book value of the building was RM50 million, as at June 30 this year.
After the initial payment of RM5 million, the remaining purchase consideration will be paid over 10 equal half-yearly instalments of RM4.5 million each over the next five years. HELP University College intends to fund the deal through internally generated funds and/or borrowings, but its management has yet to obtain any bank borrowings to finance the acquisition.
Meanwhile, HELP International Corporation’s net profit for the fourth quarter ended Oct 31, 2009 (4QFY09) rose 19.7% to RM5.97 million, from RM5 million in the previous corresponding quarter.
Its group revenue for the quarter was flat at RM26.2 million (RM26.16 million before). Basic earnings per share rose to 6.7 sen from 5.6 sen in the previous year.
The group is recommending a first and final dividend of 6% less income tax of 25% (3 sen per ordinary share of 50 sen each less income tax at 25%) for FY09. This is subjected to the approval of the shareholders at the forthcoming annual general meeting.
