PETALING JAYA: Pensonic Holdings Bhd is disposing of its land in Jalan 223, Section 20, Petaling Jaya, together with office building, for RM19.5 million cash.

The one-off gain for the disposal is RM10.01 million.

Its wholly owned subsidiary Pensonic Sales & Service Sdn Bhd (PSS) today entered into a sale and purchase agreement with Chua Trading Company Sdn Bhd (CTC) for the exercise.

The land measures 4,046 sqm together with a four-storey office building with an annex three-storey building comprising a warehouse and an office.

Pensonic said the disposal price was arrived at on a “willing buyer and willing seller” basis through negotiation between the vendor and the purchaser and after considering prevailing market condition.

“Notwithstanding the indicative market value of the property of RM18.8 million as stated in the valuation carried out in 2018, the current soft property market and cautious sentiment in market arising from lacklustre economy has resulted in low demand for the property. The latest audited net book value of the property was RM8.06 million as at May 31, 2018. As such, the management and the board were of the view that the disposal price of RM19.5 million is fair and reasonable,“ it explained.

The proposed disposal is part of the group’s asset rationalisation exercise to unlock and realise the increase in the value of its landed assets, including the property, to improve the overall financial position of the entire group as some RM10 million will be utilised to repay borrowings from HSBC Bank Malaysia Bhd.

Following the disposal, PSS’ business operations will be consolidated and relocated to a smaller premise at a lower operational costs in the interim whilst awaiting the completion of construction of the warehouse cum office in Klang, Selangor.

Pensonic also noted that the deal is not expected to result in the company becoming a cash or PN17 company.