In exchange for RM23.8 million in cash, TSR Capital Bhd has offered to sell a land plot in Port Dickson, Negeri Sembilan, measuring 22,134 sq m with a building constructed on it.
TF Value-Mart Sdn Bhd now leases the on-site, 11-year-old property with a 75,000 sq ft floor space for the operation of a supermarket-cum-department store, earning RM99,825 per month in rental income.
TSR Capital anticipates that the transaction would result in a net gain on disposal of RM6.57 million.
"The property is leased at the moment and is not used by TSR Group's present business. As a result, the disposal won't have an impact on the group's operations.
TSR Capital stated in a Bursa Malaysia filing that "the board takes cognisance of the loss of rental revenue upon completion of the disposal but is of the opinion that it is in the best interest of TSR Group having examined the reasoning and advantages described above."
RM16.19 million of the revenues from the sale will go toward general operating capital, RM7.3 million will be used to pay off a loan, and the remaining funds will be utilised for other costs.
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