KUALA LUMPUR (Sept 10): BLV Fashions Sdn Bhd (BLVF) and Guobena Development Sdn Bhd (GDSB), indirect wholly-owned subsidiaries of Guocoland (Malaysia) Sdn Bhd, are planning to sell two floors of leasehold commercial office spaces, together with some car park parcels, in Menara Pandan at Pandan Indah, Cheras, for RM66 million.

In a filing with Bursa Malaysia, Guocoland said both companies have entered into conditional sale and purchase agreements with Mayapada Capital Sdn Bhd for the proposed disposal.

BLVF's leasehold properties, located on the eighth floor of the tower, are vacant with original costs of investment totalling RM43.29 million, made on Oct 20, 1994 and June 3, 1999.

GDSB's leasehold properties, located on the seventh floor of the tower, have a 12% occupancy rate as at Aug 31, 2015 with a cost of RM41.86 million.

Guocoland said the sale price was reached after considering a valuation by Savills (Malaysia) Sdn Bhd, which indicated that both companies' properties carry an estimated market value of RM48 million.

Guocoland said proceeds from the disposal will be used for working capital purposes and repayment of borrowings of the group within a year of the properties' disposal.

The company said it expects to complete the disposal by the first quarter of 2016.

Guocoland's shares closed 2 sen or 1.77% at RM1.15, with a market capitalisation of RM805.53 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)