LBS subsidiary buys mall operator for RM12 million

LBS subsidiary buys mall operator for RM12 million

PETALING JAYA, 7 September: LBS Bina Group Bhd’s wholly-owned subsidiary Saujana Tunggal Sdn Bhd (STSB) has acquired the entire 100% equity interest in Gerbang Mekar Sdn Bhd (GMSB), owner and operator of a retail mall known as M3 Mall in Gombak, Kuala Lumpur for RM12 million.

STSB today entered into a share sale agreement (SSA) for the acquisition of GMSB from Jadi Wawasan Sdn Bhd (JWSB) and Chua Choon Yang.

Constructed on 3.2 acres of leasehold land, M3 Mall is part of a larger mixed development project known as “Medan Mega Melati”, which includes the M3 Residency, a two block 16-storey service apartment built atop the mall completed in the first-quarter of 2016.

The M3 Mall is valued at RM107 million by Raine & Horne International Zaki + Partners Sdn Bhd as at Aug 4, 2017. This retail mall is positioned as an “Everyday Mall” that provides necessities to the community living in the catchment areas and targets the middle-income group in the vicinity in Gombak.

The M3 Mall is charged to Kuwait Finance House (Malaysia) Bhd for a credit facility granted to GMSB.

Based on the audited financial statements of GMSB for the financial year ended Dec 31, 2016, GMSB recorded a net loss of RM5.7 million. The purchase consideration will be funded by internally generated funds.

Upon completion of the shares acquisition, GMSB will become a subsidiary of the group and would enable LBS to consolidate the future earnings to be generated from STSB and GMSB. The shares acquisition is expected to be completed in last quarter of 2017.

LBS closed 1.04% lower today at RM1.91 with 229,000 shares traded.

— THE SUN

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