Al-'Aqar sells Selesa Tower for RM112m

PETALING JAYA: Al-'Aqar Healthcare REIT has agreed to sell a freehold commercial land housing a hotel and office tower in Johor Bahru, Johor to Smartwheels Intelligence Sdn Bhd for RM112 million.
The 5,156.62 sq m land includes the 27 storey Hotel Selesa and 31 storey office block called Metropolis Tower. Selesa Tower is currently being leased to Hotel Selesa (JB) Sdn Bhd, operator of Selesa Tower for a term of 15 years. The annual net rental income is RM7.1 million.
"The proposed disposal will enable Al-`Aqar to realise the value of its investment in the property at a consideration above the current market value," it said in announcement last Friday.
It will use the proceeds from the sale for its working capital and to repay bank borrowings.
"The proposed disposal is expected to contribute positively to the earnings and earnings per unit of Al-Aqar for the financial year ending Dec 31, 2014. It is expected to generate a one-off gain on disposal of RM21.5 million," it added.
Al-'Aqar Healthcare REIT expects the sale to be completed in the second quarter of 2014.
In a separate stock exchange filing, the company said for the fourth quarter ended Dec 31, 2013, it posted a higher net profit of RM31.07 million compared with RM22.7 million while revenue was also higher at RM26.82 million compared with RM26.75 million a year ago.
Full year net profit was higher at RM73.31 million compared with RM62.9 million while revenue rose to RM107.42 million from RM103.4 million a year ago.