KLW Holdings sells Melbourne property for A$34.2 million

CATALIST-LISTED investment holding firm KLW Holdings on Wednesday said that it has signed a contract with Mill Place Investments to sell the latter its property at 301 Flinders Lane in Melbourne, Australia, for A$34.2 million (S$36.5 million).

This was the highest bid it received out of a total of 13 sale bids.

The property has been on a long-term lease to Victoria University, generating rental income for the group, albeit at a "marginal rental yield" since its purchase, it said.

As per an independent valuation report provided by Thomson Maloney & Partners on Sept 29, 2016, the market value of the property is A$25.6 million based on the income capitalisation and direct sales comparison valuation methodology.

KLW said it netted a gain of about A$5.63 million, after deducting expenses and taxation.

It added that the sale of the property has allowed the group to unlock the value of the asset to pursue other investment opportunities as and when they arise. It has also improved its cash flow position.

The stock ended 0.1 cent lower at S$0.009.