UOA to sell Bangsar South office building for RM72.54mil

PETALING JAYA: UOA Development Bhd has proposed to dispose of its 12-storey office building in Kuala Lumpur’s Bangsar South for RM72.54mil via a sell-then-lease-back arrangement.

The property developer, via wholly owned subsidiary Paramount Properties Sdn Bhd, has entered into a non-related party agreement with Marak Moden Sdn Bhd to dispose of Tower 1 within Avenue 3 of The Horizon.

In a filing with Bursa Malaysia, the group said the existing tenancies would be terminated upon the completion of the sale and purchase agreement. UOA will also lease the building from Marak Moden upon the legal possession date at a monthly rate of RM362,700 for a three-year period, subject to terms and conditions being mutually agreed upon by the parties.

It said the property was no longer sufficient for its requirements due to the UOA group’s rapid expansion. “Although a new premise has yet to be identified, the disposal of the property was predicated by the receipt of a favourable offer from the purchaser. In the interim, the proceeds from the proposed disposal will be placed into fixed deposit accounts with financial institutions.” The five-year-old tower measures approximately 111,400 sq m.

source:http://www.thestar.com.my/Business/Business-News/2014/01/08/UOA-to-sell-office-building/