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Magnus Energy unit sells Perth property for A$1m

MAGNUS Energy Group on Thursday night said its subsidiary has sold its interests in a Perth property for A$1 million (S$931,260) on March 3.

The property, located at 130 Mills Street, Welshpool, Western Australia, sits on freehold land. It covers about 2,521 square metres in area and was bought by Magnus Energy's 55.9 per cent-owned subsidiary, Mid-Continent Equipment Group, in 1993 for office and warehouse use.

The seller, Mid-Continent Equipment (Australia), is wholly-owned by Mid-Continent Equipment Group. Meanwhile, the buyer is Murchison Relines, an independent third party, the group said in a regulatory update. 

The property sale follows the closure of Mid-Continent Equipment (Australia)'s business last year, which saw remaining assets in Perth, Queensland and Singapore being put up for sale. The Perth property was on the market for a year and a half before the deal was secured, Magnus Energy said.

It added that the A$1 million sale price is close to the property's valuation of A$1.1 million by the company's independent valuer.

"The board considers the sale price is reasonable and fair value for the property, and the proposed disposal is not prejudicial to the company and its shareholders."

The proceeds from the sale will be used as the group's general working capital.

Magnus Energy on Dec 31, 2019 disclosed that a A$10,000 deposit for the property had been paid following a contract entered into on Dec 10, 2019.

Previously, the Singapore Exchange's regulatory arm said it would investigate the then-proposed disposal for possible Catalist rule breaches. This announcement came via a Jan 3 notice of compliance to Magnus Energy to hold all corporate transactions until its board is fully reconstituted.

Trading in Catalist-listed Magnus Energy's shares has been suspended since August last year.