The Employees Provident Fund Board (EPF) is expected to sell Bangunan KWSP Changkat Raja Chulan in Kuala Lumpur to TIME Dotcom Bhd.

Bangunan KWSP is a 13-storey freehold office building with 95 parking spaces. The low-density office building was completed in 1992.

The original cost of investment for the building by EPF in 1994 was RM46.04 million.

The building is situated on Changkat Raja Chulan, off Jalan Raja Chulan, and is surrounded by well-known residential developments such as The Maple Suites, Axon Bukit Bintang, and St Mary Residences.

AIMS Data Centre (ADC) Sdn Bhd, TIME’s wholly-owned subsidiary, has entered into a conditional sale and purchase agreement with the EPF for the proposed acquisition of the said building.

The proposed acquisition is deemed a related party transaction as EPF is a major shareholder of TIME by virtue of its 11.75 per cent equity stake.

TIME stated in a filing with the Bursa Malaysia this week that the proposed acquisition will allow the company to increase space for operational facility expansion.

“The management of TIME believes that Bangunan KWSP is in good condition to meet such operational requirements,” the statement said.

According to TIME, the RM62 million purchase price for Bangunan KWSP was determined on a willing buyer willing seller basis, taking into account the market value as appraised by two independent registered valuers. The property’s market value was estimated by the two appraisers to be RM56,000,000 and RM68,000,000, respectively.

Bangunan KWSP, based on the filing, had an unaudited net book value of RM20.59 million as of November 30, 2021.

Source: New Straits Times, January 13, 2022