Berjaya Land Bhd”s unit to dispose China project for RM1.39 billion

Berjaya Land Bhd''s unit to dispose China project for RM1.39 billion

KUALA LUMPUR, Dec 16  — Berjaya (China) Great Mall Co Ltd (GMOC) plans to dispose of the Berjaya (China) Great Mall Recreation Centre to Beijing SkyOcean International Holdings Ltd for RM1.39 billion.

GMOC is 51 per cent-owned by Berjaya Leisure (Cayman) Ltd, which in turn, is wholly-owned by Berjaya Land Bhd.

In a filing to Bursa Malaysia, Berjaya Land said GMOC today entered into a construction project transfer agreement with Beijing SkyOcean.

“It is envisaged that approximately RM743.05 million will be utilised to repay borrowings, creditors, contractors and to defray taxes on the sale of the project and incidental expenses within 12 months from the respective dates of receipt of the cash portion.

“The cash balance of approximately RM646.18 million is proposed to be distributed to the shareholders of GMOC which Berjaya Leisure, upon receipt, will utilise for working capital of the Berjaya Land Group,” it said.

The project, which is under construction, is located in Sanhe City, Hebei Province, China and spans across about 306,260 square metres of land area with about 1.21 million square metres of gross floor area.

Barring any unforeseen circumstances, the proposed disposal is expected to be completed by end-2017.