Nexgram to incur RM12m loss from sale of office tower

PETALING JAYA: Nexgram Holdings Bhd’s unit Coconut Three Sdn Bhd, formerly known as Nexgram Land Sdn Bhd, has proposed to dispose of its 11-storey stratified office building called Nexgram Tower in Bangsar South, Kuala Lumpur,for RM67 million, which will result in an estimated loss on disposal of RM12.4 million.

The group told the stock exchange that its unit had on Dec 31, 2018 entered into a sale and purchase agreement with IMS Development Sdn Bhd for the disposal.

Nexgram noted that the property’s current book value is RM79.4 million and the original cost of investment of the property on April 8, 2013 was RM64 million.

It decided to dispose of the property, which is currently held for rental purposes, after taking into consideration the challenges of the upkeep of the premises.

The proceeds arising from the proposed disposal will be utilised to settle its banking facilities and for working capital purposes.