KUALA LUMPUR (Oct 3): TSR Capital Bhd has proposed to dispose of a piece of land measuring 22,134 sq m in Port Dickson, Negeri Sembilan, with a building erected on it for RM23.8 million cash.

The 11-year-old property on-site, with 75,000 sq ft of floor area, is currently tenanted by TF Value-Mart Sdn Bhd for the business of a supermarket-cum-department store, with a rental income of RM99,825 per month.

TSR Capital’s wholly owned subsidiary TSR Ocean Park Sdn Bhd has entered into an agreement with NTS Development Sdn Bhd for the disposal.

With the sale, TSR Capital is expected to record a net gain on disposal of RM6.57 million.

“The property is currently tenanted and is not used for TSR Group’s existing operation. As such, the disposal will not affect the operations of the group.

“Nonetheless, the board takes cognisance of the loss of rental income upon completion of the disposal but is of the view that it is in the best interest of TSR Group having considered the rationale and benefits mentioned above,” TSR Capital said in a Bursa Malaysia filing.

Of the proceeds raised from the disposal, RM16.19 million will be used for general working capital, RM7.3 million for repayment of a loan, and the remaining for other expenses.

Shares of TSR Capital settled unchanged at 18 sen, giving the group a market capitalisation of RM31.4 million.