1. The salient features of the sale and purchase agreement of the acquisition and valuation report
The Purchaser, Wengcon Equipment Sdn Bhd, shall pay 10% of the purchase price upon execution of the sale and purchase agreement with the balance of 90% payable within ninety (90) days thereof.
2. The original cost of investment to Danga Bay Sdn Bhd (“the Vendor”) and the date of such investment
Danga Bay Sdn Bhd is the developer for the Danga Walk Street Mall and the development cost for the properties is RM2.771 million.
3. The postal address of the properties
Unit No. Postal Address
B4-G-4 #G-04 Block 4, Danga Bay, Jalan Skudai, 80200 Johor Bahru, Johor
B4-1-4 #1-04 Block 4, Danga Bay, Jalan Skudai, 80200 Johor Bahru, Johor
B4-2-4 #2-04 Block 4, Danga Bay, Jalan Skudai, 80200 Johor Bahru, Johor
B4-G-6 #G-06 Block 4, Danga Bay, Jalan Skudai, 80200 Johor Bahru, Johor
B4-1-6 #1-06 Block 4, Danga Bay, Jalan Skudai, 80200 Johor Bahru, Johor
B4-2-6 #2-06 Block 4, Danga Bay, Jalan Skudai, 80200 Johor Bahru, Johor
B4-G-9 #G-09 Block 4, Danga Bay, Jalan Skudai, 80200 Johor Bahru, Johor
B4-1-9 #1-09 Block 4, Danga Bay, Jalan Skudai, 80200 Johor Bahru, Johor
B4-2-9 #2-09 Block 4, Danga Bay, Jalan Skudai, 80200 Johor Bahru, Johor
B5-G-6 #G-06 Block 5, Danga Bay, Jalan Skudai, 80200 Johor Bahru, Johor
B5-1-6 #1-06 Block 5, Danga Bay, Jalan Skudai, 80200 Johor Bahru, Johor
B5-2-6 #2-06 Block 5, Danga Bay, Jalan Skudai, 80200 Johor Bahru, Johor
4. The net book value of the properties based on the Vendor’s last audited accounts
The net book value is the same as the development cost of the properties which is RM2.771 million.
5. The terms of the tenure; if leasehold, the expiry date of the lease
The Master Title is on a freehold tenure.
6. The date of valuation and method of valuation of the properties
The material date of valuation is taken as at 10 February 2009. Cheston International (Johor) Sdn Bhd have used the Comparison Method of Valuation as this is the most common and easily understood method. This valuation approach entails comparing the property with similar properties that were sold recently as well as evidence of other properties currently being offered for sale in the locality. Adjustments are then made to account for similarities or differences in location, size, improvements, time element, market conditions and other relevant factors to arrive at the fair value.
7. The breakdown of the source of funding for the Acquisition and the details of the Vendor
The source of financing is from internal funding.
8. Particular of all liabilities, including contingent liabilities and guarantees to be assumed by Knusford Berhad (“KB”) group, arising from the Acquisition
There is no liability, including contingent liability and guarantee to be assumed by Knusford Berhad (“KB”) group, arising from the Acquisition
9. The effect of the Acquisition on the gearing and net assets per share of KB group
The Acquisition have no effect on the gearing and net assets per share of KB group.
10. The prospects of the properties
The properties are located within a prime location in the Danga Bay area. Danga Bay is the new and prestigious development within the Iskandar Development Region. This locality is earmarked for development as an international financial centre with high rise buildings to be developed in the vicinity. Other developments are high value commercial and residential properties.
11. The estimated time frame for the completion of the Acquisition
Three (3) months from the date of Sale & Purchase Agreement.
12. Whether the other directors and/or major shareholders and persons connected with a director or major shareholder have any interest, direct and indirect, in the Acquisition and the nature and extent of their interests.
Save and except for Dato’ Lim Kang Hoo and Dato’ Lim Kang Swee who are deemed interested in the transaction by virtue of Dato’ Lim Kang Hoo being a Director and major shareholder of Danga Bay Sdn Bhd and Dato’ Lim Kang Swee is a brother of Dato’ Lim Kang Hoo, none of the other directors and/or major shareholders and persons connected with them has any direct or indirect interest in the acquisition.
13. How the purchase consideration will be satisfied including the terms of any arrangement for payment on a deferred basis
The purchase consideration will be satisfied by cash payments.
14. The approximate age of the buildings
The buildings were completed seventeen (17) months ago.
15. The total size of the land on which the properties are erected.
The provisional land area on which the properties are erected is 37,273.8 sq. m.
16. The amount of lettable space of the properties
Unit No. lettable floor area
B4-G-6, B4-1-6 & B4-2-6 314 sq. m. (approx. 3,380 sq. ft.)
B4-G-9, B4-1-9 & B4-2-9 310 sq. m. (approx. 3,336 sq. ft.)
B4-G-4, B4-1-4 & B4-2-4 314 sq. m. (approx. 3,380 sq. ft.)
B5-G-6, B5-1-6 & B5-2-6 313 sq. m. (approx. 3,369 sq. ft.)
__________
1,251 sq. m.
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17. The amount of lettable space available for letting and the occupancy of the properties
The properties are vacant units which have not been occupied.
18. The percentage of occupancy of the properties
All the properties are vacant units which have not been occupied.
19. The existing and proposed use of the properties. If currently let out or is proposed to be let out, the details of the rentals and the rental income or expected rental income per month or per annum.
The properties are intended to be let out. The expected rental income from the said properties is about RM30,000.00 per month.
Query Letter Content
| We refer to your announcement dated 27 March 2009 in respect of the aforesaid matter. In this connection, kindly furnish the Exchange with the following additional information for public release:- (1) The salient features of the sale and purchase agreement of the Acquisition and valuation report. (2) The original cost of investment to Danga Bay Sdn. Bhd. ("the Vendor") and the date of such investment. (3) The postal address of the properties. (4) The net book value of the properties based on the Vendor's last audited accounts. (5) The terms of the tenure; if leasehold, the expiry date of the lease. (6) The date of valuation and method of valuation of the properties. (7) The breakdown of the source of funding for the Acquisition and the details of the Vendor. |