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Friday, 30 June 2017

(The Edge Financial Daily) AEON sells Mahkota Cheras mall for RM87.8m



The group has been on the hunt for a buyer for about 18 months

BY CHESTER TAY

KUALA LUMPUR: AEON Co (M) Bhd is disposing of a piece of freehold land together with the two-storey AEON Mahkota Cheras Shopping Centre built on the land for RM87.8 million.

In a filing with Bursa Malaysia, AEON said the disposal is in line with its corporate strategy of focusing on and developing its future retail business.

The buyer of the property — used for the purpose of operating a shopping centre with car parks and a department store-cum-supermarket — is Foremost Wealth Management Sdn Bhd.

AEON said Foremost Wealth is an investing holding company with a paid-up share capital of RM1 million, but did not disclose the owner of the entity.

The group said the net book value of the property for the financial year ended Dec 31, 2016 (FY16) is RM67.4 million and the age of the building is seven years.

Upon completion of the disposal, AEON expects to book a gain of RM17 million after adjusting for necessary expenses and taxes for FY17.

The group said the cash proceeds are intended to be used as working capital and to reduce borrowings.

It expects the disposal to be completed in four months.

The group has been looking for a buyer since about 18 months ago.

The Edge Malaysia weekly had reported that AEON was looking to dispose of the property for at least RM80 million in October 2015.

AEON’s share price fell three sen or 1.32% to RM2.24 yesterday, giving it a market capitalisation of RM3.15 billion.