KUALA LUMPUR: TSR Capital Bhd's wholly-owned subsidiary TSR Ocean Park Sdn Bhd entered into a conditional agreement with NTS Development Sdn Bhd for the disposal of a single-storey commercial building and the two tracts of land it is on, measuring a combined 22,134 sqm, in Port Dickson, Negeri Sembilan.
It said in a filing with Bursa Malaysia, the property will be disposed for a cash consideration of RM23.8mil.
As at June 30, 2022, the property had a net book value of RM16.93mil, giving TSR a net gain of RM6.57mil from the sale.
The property is currently tenanted to supermarket-cum-department store TF Value-Mart Sdn Bhd for a rental income of RM99,825 a month.,
TSR said the disposal was to realise and unlock the value of the investment, with the proceeds going towards working capital for existing and new projects and the repayment of loans.
It added that the sale will not affect the operations of the group as it is not used in its existing operations.
"Nonetheless, the Board takes cognisance of the loss of rental income upon completion of the disposal but is of the view that it is in the best interest of TSR Group having considered the rationale and benefits mentioned above," it said.
It estimates the proposal to be completed by the third quarter of the financial year ending June 30, 2023.