KUALA LUMPUR: Global Oriental Bhd will dispose of 18 retail units at Pavilion Embassy through its subsidiaries Exceed Concept Sdn Bhd and Pedoman Ikhtisas Sdn Bhd for a total of RM35 million.
The disposal involves 12 units owned by Exceed Concept and six units owned by Pedoman Ikhtisas, according to a bourse filing.
Exceed Concept's units are currently leased to tenants operating a supermarket, market hall and food and beverage outlets, generating around RM66,000 in monthly rental.
Pedoman Ikhtisas's units, situated on Levels 1 and 2 of Pavilion Embassy, include five tenanted units engaged in retail, childcare, and fitness services, generating about RM41,000 per month, while one unit remains vacant.
The purchasers of the units are EZT Property Management Sdn Bhd and Brillion Land Sdn Bhd.
The transactions are based on a willing-buyer, willing-seller negotiation and represent a premium over both the latest audited net book value of RM25.2 million and the latest independent valuation of RM25.7 million.
Under the sale agreements, RM11.7 million of the disposal consideration will be offset against debts owed to the purchasers' related companies, while the remaining RM23.3 million will be paid in cash within 14 days from the unconditional date of the agreements.
Global Oriental expects the disposal to generate an estimated net gain of RM7.4 million for the financial year ending March 31, 2026.
Proceeds will also be used to reduce borrowings, settle tax obligations and support working capital for future projects, strengthening the company's balance sheet and financial flexibility.
Of the proceeds, RM11.7 will be used to settle debts owed to the buyers' related companies, while another RM10.7 million will go towards repaying a bank loan with AmBank.
"The remaining proceeds will provide a valuable source of working capital to support future development projects and strategic business ventures, thereby enabling the company to capitalise on growth opportunities and drive long-term sustainable growth," Global Oriental said.
The company noted that the disposal will not affect its share capital or substantial shareholding structure. Completion is expected within three months.