MAS to sell academy to EPF for RM145mMarch 10 2007
Malaysian Airline System Bhd (MAS) has agreed to sell a property that houses its training academy and information technology centre to the Employees Provident Fund.The sale of the property in Kelana Jaya, including the freehold land the building is on, will be for RM145 million.
MAS said it would use the cash to fund working capital and the deal was part of its turnaround plan to sell non-core assets.
It will then lease the same property from the EPF for five years, with an option to renew the duration of the lease for a further five years. The proposed disposal is expected to be completed by year-end.
“The proposed leaseback is to give us more flexibility in choosing what are the best options for office consolidation in the future. “This can help to maximise the yield and, at the same time, achieve the best price possible,” the statement said.
MAS will make a gain of RM43.2 million after subtracting the property’s value of RM99.2 million in its books and another RM2.6 million in expenses for the deal. An independent valuation of the property in October last year valued it at RM145 million.
MAS bought the property in 1989 for RM133.1 million.
If you owned a building and sells it to cash out, then why would you lease it back from the buyer for 5-years?
MAS said this is to maximise yield? Ha,ha,ha, This is the first time I have learn financial management where I am told that the way to maximise yield is to sell your assets and then lease it back from the buyer.
Why don't MAS consider REIT (Real Property Investment Trusts)? Would it makes more commercial senses?
Interesting fact is that MAS bought the property at RM133mil, had a book value of RM99mil, now claims that they stand to gain RM43mil after selling the asset at RM145mil.
MAS said it would use the cash to fund working capital and the deal was part of its turnaround plan to sell non-core assets.
It will then lease the same property from the EPF for five years, with an option to renew the duration of the lease for a further five years. The proposed disposal is expected to be completed by year-end.
“The proposed leaseback is to give us more flexibility in choosing what are the best options for office consolidation in the future. “This can help to maximise the yield and, at the same time, achieve the best price possible,” the statement said.
MAS will make a gain of RM43.2 million after subtracting the property’s value of RM99.2 million in its books and another RM2.6 million in expenses for the deal. An independent valuation of the property in October last year valued it at RM145 million.
MAS bought the property in 1989 for RM133.1 million.
If you owned a building and sells it to cash out, then why would you lease it back from the buyer for 5-years?
MAS said this is to maximise yield? Ha,ha,ha, This is the first time I have learn financial management where I am told that the way to maximise yield is to sell your assets and then lease it back from the buyer.
Why don't MAS consider REIT (Real Property Investment Trusts)? Would it makes more commercial senses?
Interesting fact is that MAS bought the property at RM133mil, had a book value of RM99mil, now claims that they stand to gain RM43mil after selling the asset at RM145mil.
5 comments:
Sell and lease. They did it with the planes and now these. Interestingly, only gohmen-related buyers. Are these bailouts?
Will MAS sells their human resources and 'lease' them back later? Who knows. Might do wonders to productivity.
ok, EPF again the sucker!
Even MAS buy the property for RM133.1 millions, in a rush sale, EPF are suppose to suppress the price then pay RM145 millions. This is a STUPID deal for EPF, as no matter how these joker evaluator make the figures, IT IS IRRELEVANT to the evaluation price if there is no other buyer.
who say the EPF will take care of our old age money? look at this purchase and you will see for sure that our money is used to bail our loss after loss made by incompetent managers of GLCs.
Using the EPF = Robbin' our retirement funds. These, in Broad Daylight. The Sooth-sayers are indeed correct.
Har har har
A REIT you have to find many fools. In this exercise find one fool named Zainol is enough. Whats the difference between the fler and a drunken sailor? The drunken sailor uses his own money.
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