Non Related Party Transactions

BackJul 05, 2016

 

Type Reply to Query
Reply to Bursa Malaysia's Query Letter - Reference ID IQL-04072016-00001
Subject NON RELATED PARTY TRANSACTIONS
Description

SALCON BERHAD (SALCON OR THE COMPANY)
PROPOSED ACQUISITION BY SALCON DEVELOPMENT (AUSTRALIA) PTY LTD, A WHOLLY-OWNED SUBSIDIARY OF SALCON DEVELOPMENT SDN BHD, WHICH IN TURN IS A WHOLLY-OWNED SUBSIDIARY OF SALCON, OF ALL THAT LAND LOCATED AT 16-22 CLAREMONT STREET, SOUTH YARRA, VICTORIA, AUSTRALIA FROM K. & E. ROGERS PTY LTD FOR A TOTAL CASH CONSIDERATION OF AUD37,880,000.00

Query Letter Contents

We refer to your Company’s announcement dated 30 June 2016, in respect of the aforesaid matter.

In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

1.         The net book value of the Property based on the latest audited financial statements of the Vendor.

2.         If the office building is currently let out, the details of the rentals, the rental income per month or per year.

3.         The approximate age of the office building.

4.         The total development cost of the Property into a residential development, and the expected commencement and completion dates of the development.

5.         The expected profits to be derived from the Property development.

6.         The sources of funds for financing the development cost and its breakdown

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

 

Yours faithfully,

 

TAN YEW ENG
Vice President, Issuers
Listing Division, Regulation

TYE/yls

Reference is made to the Company’s announcement dated 30 June 2016 and the query letter dated 4 July 2016 issued by Bursa Malaysia Securities Berhad. The Board of Directors of Salcon wishes to provide the following additional information:-

 

1. The net book value of the Property based on the latest audited financial statements of the Vendor.

 

The net book value of the Property was not made known to the Company and the Company is not privy to the financial statements of the Vendor.

 

2. If the office building is currently let out, the details of the rentals, the rental income per month or per year.

 

The details of the existing lease are set out below:-

 

Lessor

:

K. & E. Rogers Pty Ltd

Lessee

:

Roger David Stores Pty Ltd

Demised Property

:

A part of the first floor of the building on the Property, together with a car parking license providing for a right to use 32 car parking spaces

Term

:

1 July 2005 to 30 June 2017

Use of Demised Premises

:

Administrative office

Rental Income

:

AUD365,371.00 (excluding Goods & Services Tax) per annum 

 

3. The approximate age of the office building.

 

The approximate age of the office building is 46 years.

 

4. The total development cost of the Property into a residential development, and the expected commencement and completion dates of the development.

 

(a) Total development cost is approximately AUD171,000,000.00 

(b) Expected commencement date of the development is 3rd quarter of 2017

(c) Expected completion date of the development is 4th quarter of 2019

 

5. The expected profits to be derived from the Property Development.

 

The expected profits to be derived from the Property Development is approximately AUD45,000,000.00.

 

6. The proposed source of funds for financing the development cost and its breakdown.

 

Proposed Source of Funding

Percentage

Bank Borrowing

75%

Internal Fund

25%

Total

100%

 

 

This announcement is dated 5 July 2016.



Announcement Info

Company Name SALCON BERHAD
Stock Name SALCON
Date Announced 05 Jul 2016
Category General Announcement for PLC
Reference Number GA1-05072016-00030