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Kingsmen Creative's Malaysian unit sells Selangor property for RM10m
A MALAYSIA-based subsidiary of communication design and production group Kingsmen Creatives has agreed to sell a freehold property in Selangor for 10 million ringgit (S$3.26 million), the mainboard-listed company said in an exchange filing on Wednesday evening.
The subsidiary, Kingsmen Exhibits, is incorporated in Malaysia and the property will be sold to Avares, said the filing.
The freehold Selangor property, with a land area of 38,386 square feet and built-in area of 19,824 square feet, is now tenanted for rental income, Kingsmen said.
It added that the selling price is RM 5.1 million over the book value of the property as at Sept 30. The sale of the property would enable the group to unlock its value, the company said.
The funds, after deducting estimated expenses, will be used to repay the mortgage loan and be used for the general working capital requirements of the subsidiary, Kingsmen said.
The company said the net asset value of the property, compared with the group's net asset value as at June 30 is 1.5 per cent. The property does not itself contribute to the group's net loss for the first half of 2020, it added.
Kingsmen's shares closed flat at 23 Singapore cents on Wednesday.