This article first appeared in The Edge Financial Daily on November 13, 2019

KUALA LUMPUR: UEM Sunrise Bhd is disposing of a property in Melbourne for A$107.09 million (RM304.13 million).

The group said its wholly-owned subsidiary, UEM Sunrise (St Kilda Road) Pty Ltd (acting as a trustee and on behalf of UEM Sunrise [St Kilda Road] Unit Trust), is selling the asset to Acme Co No 4 Pty Ltd.

“The proposed divestment allows UEM Sunrise to immediately unlock the property’s value at a gain in line with the market value and free up cash for the group to pursue other investments and venture opportunities,” it added in a filing with Bursa Malaysia.

The disposal, it said, is expected to be completed by end-2019 and give an estimated net gain on disposal of RM54.32 million.

UEM Sunrise said the property was acquired in May 2016 for A$58 million. The property is at a strategic corner of St Kilda Road and Bowens Crescent, one of the main arteries into the Melbourne central business district and flanked by office, residential and mixed-use towers.

The site currently accommodates a 21-storey building overlooking the Royal Botanic Gardens to the north, Fawkner Park to the north-east and Albert Park, as well as Port Philip Bay to the south and south-western aspects, according to the group.

UEM Sunrise’s share price closed half a sen or 0.66% lower at 75 sen yesterday, with a market capitalisation of RM3.4 billion.