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CABNET

0.205

-0.005 (-2.4%)

ACQUISITION BY CABNET SYSTEMS (M) SDN BHD OF ALL THAT PIECE OF 60 YEARS LEASEHOLD LAND (LEASEHOLD EXPIRING 21 MAY 2053 PER LAND TITLE) HELD UNDER HS(D) 210901 PTD 64082 MUKIM TEBRAU, DAERAH JOHOR BAHRU, NEGERI JOHOR TOGETHER WITH A DETACHED FACTORY ERECTED THEREON FOR A TOTAL PURCHASE PRICE OF RM4,100,000-00

CABNET HOLDINGS BERHAD

Type Reply to Query
Reply to Bursa Malaysia's Query Letter - Reference ID IQL-19092019-00001
Subject ACQUISITION BY CABNET SYSTEMS (M) SDN BHD OF ALL THAT PIECE OF 60 YEARS LEASEHOLD LAND (LEASEHOLD EXPIRING 21 MAY 2053 PER LAND TITLE) HELD UNDER HS(D) 210901 PTD 64082 MUKIM TEBRAU, DAERAH JOHOR BAHRU, NEGERI JOHOR TOGETHER WITH A DETACHED FACTORY ERECTED THEREON FOR A TOTAL PURCHASE PRICE OF RM4,100,000-00
Description
Cabnet Holdings Berhad ("Cabnet" or the "Company")
-	Sale and Purchase Agreement enter by Cabnet Systems (M) Sdn. Bhd., a wholly-owned subsidiary of Cabnet
Query Letter Contents

We refer to your Company’s announcement dated 17 September 2019, in respect of the aforesaid matter.


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

 

1.        The number of storeys of the detached factory, and the amount of lettable/usable space available for letting and the occupancy.

2.        The method of valuation and quantification of the market value.

 

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

 

Yours faithfully,


Listing

Regulation

Cc : Market Surveillance Dept. , Securities Commission (via fax)

Reference is made to the Company’s announcement dated 17 September 2019 (“Announcement”) on the acquisition by Cabnet Systems (M) Sdn Bhd of all that piece of 60 years leasehold land (leasehold expiring 21 May 2053 per Land Title) held under HS(D) 210901 PTD 64082 Mukim Tebrau, Daerah Johor Bahru, Negeri Johor together with a detached factory erected thereon at the purchase price of Ringgit Malaysia Four Million One Hundred Thousand (RM4,100,000-00) only and the Bursa Malaysia Securities Berhad’s (“Bursa Securities”) Query Letter dated 19 September 2019 (“Bursa Query”).

 

Unless otherwise stated, the terms used throughout this announcement shall have the same meanings as defined in the Announcement. The Company wishes to furnish additional information as per Bursa Query for public release:

 

1. The number of storeys of the detached factory, and the amount of lettable/usable space available for letting and the occupancy.

 

Number of storeys 

 

The said property is a double storey detached factory.

 

Amount of lettable/usable space available for letting and occupancy

 

The total land area of the said property is 2,039 square metres, while the total built-up area of the said property is 1,729.82 square metres which will be fully occupied by Cabnet group as administrative office and warehouse.

 

2. The method of valuation and quantification of the market value.

 

Basis of Valuation

 

The valuation of the said property conducted by Messrs Jones Lang Wootton (Chartered Surveyors), an independent professional valuer on 30 May 2019 is requested to be prepared for financing purpose. The basis of valuation adopted for the said property is the “Market Value” which is defined as “the estimated amount for which an asset or liability should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion”.

 

Valuation Methodology

 

The valuation is based on the “Comparison Approach” and “Cost Approach”. Under the Comparison Approach, comparison is made of the property under valuation with sales of other similar properties, where dissimilarities exist, adjustments are made. The Cost Approach essentially entails the summation of the land and building values. 

 

The land component is arrived at by the Comparison Approach, that is, comparison is made of the property under valuation with sales of other similar industrial land/properties, where dissimilarities exist, adjustments are made. The building component is arrived at by the Depreciated Replacement Cost Approach whereby an estimate is made of the replacement cost new and then allowing of depreciation for economic, physical and functional obsolescence.

 

Opinion of Value

 

The opinion of the Market Value of the 60 years leasehold interest of the said property having an unexpired term of about 34 years (as at the date of valuation) and having a final surveyed land area of 2,039 square metres, with vacant possession and on the basis a Certificate of Fitness For Occupation (CFO) issued and subject to the title being free of all encumbrances, good, marketable and registrable is RM3,900,000 (Ringgit Malaysia: Three Million and Nine Hundred Thousand only).

 

This Announcement is dated 19 September 2019.





Announcement Info

Company Name CABNET HOLDINGS BERHAD
Stock Name CABNET
Date Announced 19 Sep 2019
Category General Announcement for PLC
Reference Number GA1-19092019-00044