Sale And Post Completion Tenancy Arrangement With Mayban Trustees Berhad, The Trustee Of Amfirst Real Estate Investment Trust
BackJan 19, 2009
Salcon Berhad ("Salcon" or "the Company") wishes to announce that the Company and its subsidiaries have on 19 January 2009 entered into the following agreements with Mayban Trustees Berhad ("MTB"), the trustee of AmFirst Real Estate Investment Trust:-1. two (2) Sale and Purchase Agreements ("SPAs") between Salcon Resources Sdn Bhd ("SRSB") and MTB to dispose two (2) commercial properties located at 15th Floor and 16th Floor, Menara Summit, Persiaran Kewajipan USJ 1, 47600 UEP Subang Jaya, Selangor Darul Ehsan ("Premises"), measuring approximately 12,055.58 square feet each, for a total cash consideration of RM7,500,000 ("Disposal"). The Disposal is expected to be completed by end of July 2009;
2. two (2) Tenancy Agreements between Salcon Engineering Berhad ("SEB") and MTB to rent the Premises for a period of two (2) years from the completion date of the SPAs at a monthly rental of RM75,468 for the first year of tenancy and RM77,880 for the second year of tenancy and with an option to renew for a further three (3) years at a monthly rental to be based on the then prevailing market rate; and
3. a Guarantee and Indemnity Agreement between the Company and MTB in relation to the guarantee of minimum gross rental income of MTB ("Guarantee") as follows:-
a) RM905,000 for the first year of tenancy;
b) RM935,000 for the second year of tenancy; and
c) RM482,000 for the first six months in the third year of tenancy.
SRSB is a wholly-owned subsidiary of SEB, which in turn a wholly-owned subsidiary of Salcon.
The Disposal and the Guarantee will not have any significant effect on the earnings or net assets of Salcon Group for the financial year ending 31 December 2009, and the share capital of the Company. The Company however is expected to register a loss of RM2.2 million from the Disposal.
None of the Directors and/or substantial shareholders of the Company or persons connected with them have any interest, direct or indirect, in the Disposal and the Guarantee.