KUALA LUMPUR, June 20 — Property developer, Selangor Dredging Bhd (SDB), will dispose of a piece of freehold commercial land together with four blocks of commercial building and two levels of basement car parks erected thereon known as “Wisma Selangor Dredging”.
In a filing to Bursa Malaysia today, SDB said, the land, in Jalan Ampang, Kuala Lumpur would be sold to Golden Eagle Realty Sdn Bhd for RM480 million.
SDB’s principal adviser, Maybank Investment Bank Bhd (Maybank IB), said the proposed disposal was expected to be completed in the first quarter of 2018.
“The proposed disposal provides an opportunity for the group to unlock its investment in Wisma Selangor Dredging and generate immediate cash flow for the group.
“It will enable the group to raise funds to repay part of its bank borrowings, which will reduce the group’s gearing levels,” it said.
Maybank IB said the proposed disposal would also result in interest savings and provide the group with financial flexibility to secure additional borrowings for new investment and development opportunities.
The group, after the disposal, expected its net gearing to be reduced to 0.05 time from 0.33 time as of March 31, 2016.