Guocoland's subsidiary disposes of entire stake in DC Tower for RM189.33 million - See more at: http://www.iproperty.com.my/news/10452/guocoland-s-subsidiary-disposes-of-entire-stake-in-dc-tower-for-r
Date：2015/07/07
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KUALA LUMPUR, July 3 (Bernama) -- Hong Leong Real Estate Holdings Sdn Bhd has entered into a conditional share sale agreement with Hong Leong Bank to dispose of the entire issued and paid-up share capital of DC Tower Sdn Bhd for RM189.33 million.
The company is a wholly-owned unit of Guocoland (Malaysia) Bhd.
Guocoland in a filing to Bursa Malaysia today said the proposed disposal enables it to unlock the investment in DC Tower at current market value and realise gain.
It said the disposal also enabled the company to strengthen its liquidity and cash flow position by raising cash proceeds of RM189.3 million which will be utilised for, inter alia, the repayment of bank borrowings.
Meanwhile, Hong Leong Bank in a separate filing to Bursa Malaysia said the acquisition would be funded through internally generated funds and upon completion, planned to relocate its head office to DC Tower's, Office Tower A.
Concurrently, it would also relocate selected departments from other premises across Klang Valley into the same property.
The Hong Leong Bank head office is located at Wisma Hong Leong in Kuala Lumpur's Golden Triangle, which is a leased property.
Hong Leong Bank said consolidating its personnel into one location enables it to improve working synergies and effectiveness in mitigating the risk of being subjected to periodic rental revision and non-renewal of tenancies upon expiry.
"The property will also be partially leased to related companies of Hong Leong Bank. Arrangements in relation to the leasing have yet to be finalised and as such, details on the same is unavailable at this juncture," it added.