KUALA LUMPUR (Jan 3): Nexgram Holdings Bhd has proposed the disposal of Nexgram Tower, an 11-storey stratified office building located at Bangsar South, Kuala Lumpur, for a consideration of RM67 million to IMS Development Sdn Bhd.

But the group will realise an estimated loss on disposal of approximately RM12.4 million, based on the property’s current book value of RM79.4 million. The original cost of investment of the building was RM64 million.

In a bourse filing, the company said it had decided to dispose of the property, which is currently held for rental purposes after taking into consideration the challenges of upkeeping the premises.

The board is of the view that the proposed disposal is in the best interests of the group.

“The proceeds arising from the proposed disposal shall be utilised to settle the banking facilities and the balance will be utilised for working capital purposes,” said Nexgram.

It added the disposal will not have any material impact on the issued and paid-up share capital, net assets, earnings, gearing and substantial shareholdings of the company.

Nexgram closed down 0.5 sen or 25% at 1.5 sen, valuing the company at RM31.07 million.