KUALA LUMPUR: The Nomad Group Bhd wants to hive off six assets to a Hong Kong-incorporated management service firm for £4.25 million (RM22.3 million) cash, which is about half or 47.3% less than the RM42.3 million initial investment the group forked out for the properties between 2007 and 2014.

In a filing with Bursa Malaysia yesterday, the group said it had, together with its wholly-owned unit, The Nomad Offices Sdn Bhd (TNOSB), entered into a framework sale agreement with Regus Asia Pacific Management Ltd on Nov 12 for the disposal of the assets to the latter.

The assets to be disposed of are Nomad Space Sdn Bhd, The Nomad Offices Pte Ltd, Central Offices Pte Ltd, The Nomad Offices (Philippines) Inc, The Nomad Offices (Thailand) Co Ltd and PT Concept Kreativ, which collectively own 11 offices in five countries.

As at July 31, 2014, the unaudited net book value of all the assets was only RM10.8 million, just over a quarter or 25.5% of its initial investment.

The disposal price of RM22.3 million was arrived at after adding the unaudited net book value of the properties with a goodwill of RM11.5 million, the group said in its announcement.

“The proposed disposal is part of a rationalisation undertaken by The Nomad Group to focus and concentrate on its hotels and serviced residences business.”

Based on the net book value, the group said the disposal, which is slated to be completed by the first quarter of next year, will give rise to a gain before tax of RM11.5 million or five sen per share for the group.

The Nomad Group, which is involved in property management, investment holding, besides being a hotelier and operator of serviced offices and apartments, plans to use the proceeds from the proposed disposal for working capital.

Its counter closed unchanged at 93 sen yesterday, giving it a market capitalisation of RM207.45 million.

This article first appeared in The Edge Financial Daily, on November 13, 2014.