Prestariang unit to buy corporate offices for RM11.4m

PETALING JAYA: Prestariang Bhd’s subsidiary Prestariang Systems Sdn Bhd will be purchasing eight-storey semi-detached signature corporate offices or retail suites located in Dengkil from Emkay Group’s subsidiary Joyful Star Sdn Bhd for RM11.41 million.

Prestariang said in a Bursa Malaysia filing it had entered into eight separate sale and purchase agreements with the seller on Oct 9, to purchase the property known as Block 11B, Star Central @ Cyberjaya located at H.S.(D) 36937, PT 51149, Mukim Dengkil, Daerah Sepang, Selangor.

The properties are within an on-going mixed development project known as Star Corporate Park, Star Central @ Cyberjaya comprising of commercial office blocks.

The development which has reached a completion rate of 90%, and will obtain its certificate of completion and compliance by the first quarter of 2018.

The group which plans to complete the purchase by the first quarter of next year, had received a 7% discount from the original purchase price of RM 12.27 million, after valuation reports for similar development and the recent transaction of the same development issued by the Land Authority were taken into account.

“Upon completion of the proposed acquisitions, the properties which are adjacent to the recently purchased Block 12 as announced on Jan 27, 2017, will be a strategic location to consolidate the group’s operations namely SKIN, Educloud, Software & Services, TalentXChange and the corporate office. The offices shall be fully equipped with international standard training center and Centre of Excellence showcasing the group’s IPs particularly SKIN and Educloud,” Prestariang’s board of directors said on the rationale behind the purchase.

Prestariang plans to foot the purchase with internally-generated funds and/or bank borrowings.

The purchase will not impact Prestariang’s earnings nor increase its net gearing ration for the financial year ending Dec 31, 2017.

Prestariang’s shares fell 1.16% to close at RM1.70 with some 114,100 shares traded. Its market capitalisation stood at RM824.74 million.