Kumpulan Perangsang Selangor Berhad has informed that it has entered a conditional sale and purchase agreement with Perbadanan Kemajuan Negeri Selangor to dispose a 26-storey tower block with 4-storey podium block and 3-storey basement car park known as “Plaza Perangsang” for a total cash consideration of RM46 million.
Proposed Disposal is deemed to be a related party transaction as PKNS is a substantial shareholder of KPS Berhad and connected to Darul Ehsan Investment Group Berhad, an immediate holding company and a major shareholder of KPS Berhad, which in turn is a wholly-owned subsidiary of Menteri Besar Selangor.
The Property is presently let to a few external independent third parties and a wholly owned subsidiary of PKNS. Upon completion of the Agreement, KPS Berhad said ot will assign its rights, interests, and benefits under the tenancy agreements with the existing tenants to PKNS by way of a deed of novation, under which PKNS shall assume all the Company’s
obligations under the existing tenancy agreements.
KPS Berhad will maintain its office at Level 17 of the Property and will enter into a tenancy agreement with PKNS upon completion of the Proposed Disposal.
The sale is part of the group’s strategic direction which to monetise its non-core assets and allow it to utilise the cash for working capital and pare down its borrowings. Furthermore, it said a substantial amount of funds is required for capital
expenditure in order to refurbish or redevelop the Property to a satisfactory condition commensurate with its age.
