Recent Trend of Sale And Leaseback Deals Involving Listed Companies

As discussed in my earlier articles on Sale &Leaseback or REIT,there are many reasons for such disposal which includes

• focusing on its core competencies;

• cash strap hence getting cheaper &larger funding to provide for working capital

• improving fixed assets utilization;

• realized gain from disposal of fixed assets;

• disposal of non-core fixed assets;

• interest saving as proceeds used to repay hefty debts;

• provides fund for bigger expansion;

• the ability to sell off core assets and at the end of the period still able to retain the assets ( clauses provided in the sale and leaseback arrangement)

Seller/BusinessBuyerDate AnnouncedPropertyIndicative Price (Rm mil)
Advance Synergy ( Diverse)Amanah Raya Bhd13/12/053 hotels in Alor Star,Cherating &Langkawi99.87
Seal Inc (Diverse)Amanah Raya Bhd23/12/05Selayang Mall Shopping Centre120
Aeon Co (M) (Retailer)Equity Nirvana Sdn.Bhd28/12/05Kinta City Shopping Centre121
C.I.Holdings (Manufacturer)Amanah Raya Bhd18/1/06Industrial leasehold land with buildings in Bandar Baru Bangi23
SEG International ( Education)Amanah Raya Bhd21/2/06(i) SEGI College,Subang Jaya
(ii) 2 commercial buildings in Serdang
48.3
19
AIC Corp (Manufacturer)Amanah Raya Bhd9/3/06Leasehold land with offices &factories in Shah Alam19
Silver Bird Group (Manufacturer)Amanah Raya Bhd27/3/06Main manufacturing facility in Shah Alam93.1
Tamadam Bonded Warehouse (Warehouse &distribution)Amanah Raya Bhd28/3/06Leasehold land with industrial warehouse in Klang31

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