New owner for Setapak development

09/08/2003 NST PROP

In an apparent effort to rid itself of assets which are slow to develop due to encumbrances, ailing public listed outfit Mycom Bhd recently sold its Sentul Murni project in Setapak, Kuala Lumpur.

The 43.04-acre site approved for mixed development was picked up for RM3.5 million, or a lowly RM1.90psf, by Paramount Venue Sdn Bhd, a private limited company with a paid-up capital of RM2 located in Jalan Sultan, KL.

Mycom, which is currently undergoing restructuring, said Sentul Murni has not been able to take off due to various problems encountered with squatters on the site.

The scheme had been suspended since 1996 despite much effort to resolve the squatter issue. Mycom said, adding that the sale provides it with "an avenue to divest and be free from its commitment".

The sale is expected to result in a gain of RM3.6 million for the company, which will have an impact of 0.9 sen on Mycom's earnings per share for the financial year ending June 30, 2004.

The expected gain was arrived at after taking into account the provision for diminution in value of investment in real property assets and development properties in the Sentul Murni project amounting to RM29.8 million in the financial year ending June 30, 2002.