KUALA LUMPUR (April 19): Magna Prima Bhd is disposing of a four-storey commercial building in Kuala Lumpur for RM56 million, which the property developer will use to help settle its debts.

The group said the property, located in Mukim Batu and with its lower ground floor designated for a supermarket, is being sold by its wholly-owned unit Everhall (M) Sdn Bhd to Cowboy (KL) Sdn Bhd.

“In view of the current Covid-19 pandemic, which has softened the economic sentiment, the sales consideration will be utilized for partial loan settlement of the group,” it said in an exchange filing.

Saying it had no plans to operate the building, the group added: “The disposal will release resources tied up in unutilized property and realize the property at a fair market value whilst enhancing the group’s working capital.”  

Magna Prima said the sale price was arrived at on a willing-buyer willing-seller basis and a valuation report was done on Dec 14 last year, valuing the property at RM60 million.

Shares of Magna Prima closed 2.5 sen or 4.13% lower at 58 sen, giving the group a market capitalisation of RM192.66 million.