Equine Capital Bhd’s units are disposing of 10.05 acres of leasehold land in Petaling for RM29.77 million cash to Tesco Stores (Malaysia) Sdn Bhd
The units disposing of the land are Taman Equine Industrial Sdn Bhd and Taman Equine (M) Sdn Bhd.
Equine said on April 3 the leasehold tenure of the land was 99 years and expires on Sept 18, 2093. The land was categorised as building land zoned for commercial use.
The land is presently charged to Alliance Bank Malaysia as security for credit facilities granted to Equine Capital. The land shall be transferred to Tesco free from all encumbrances.
The land was acquired in 1994 at RM4,234. The land was subsequently revalued upon listing of Equine in 2003 and the resulting revaluation surplus raised its net book value to RM10.41 million, and the value has been maintained until March 31 last year.
At present, there are partially completed building structures on the land which are the suspended projects of Festive Markets and Gourmet Deck. However, these structures would have to be demolished.
Development expenditure incurred on the suspended projects of Festive Markets and Gourmet Deck, mainly construction costs, totalled RM12.35 million to date.
Additional costs of RM6.67 million are expected to be incurred for tearing down the structures on the land, earthworks, additional infrastructure, and legal and statutory (sub-division of titles) fees.
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