Sakae enters deal to sell Malaysia property for 11.5 million ringgit

Sakae Sushi outlet in Johor Bahru, Malaysia; taken September 2018.Sakae Sushi outlet in Johor Bahru, Malaysia; taken September 2018.

Sakae Holdings has entered a deal to sell a commercial boutique bungalow building in Kuala Lumpur, Malaysia, to Seafood Island Malaysia for 11.5 million ringgit, or around S$3.67 million, the Singapore-listed sushi restauranteur said in a filing to SGX Wednesday.

A June 2020 valuation report had estimated the property’s market value at 11.6 million ringgit, Sakae noted, but added that a revaluation of the property dated end-June 2021, put the present market value at 11.22 million ringgit, based on recent sales in the vicinity and other factors.

“As the proposed disposal will be for a consideration of an amount that is higher than the updated valuation price, and in view of the current economic climate, the board is of the view that accepting the offer contained in the agreement is in the best interest of the group and the shareholders,” Sakae said.

Seafood Island Malaysia may finance the purchase via a loan from a bank or other financial institution, the filing said, adding the buyer has pain an earnest deposit of 230,000 ringgit, or around S$73,462.

Sakae said the property is currently charged to CIMB Bank as security for banking facilities.

The proceeds of the disposal will be used for general working capital and to repay bank loans, including those associated with property which need to be redeemed for the sale to be completed, Sakae said.

Losses attributed to the property amount to S$27,179, Sakae said, noting the property doesn’t generate income as it is used to house the group’s staff.

The property’s net asset value of around 11.22 million ringgit, or around S$3.58 million,  is equivalent to 6.35 percent of Sakae’s net asset value of S$56.42 million as of end-June, the filing said. The deal’s consideration of 11.5 million ringgit is equivalent to around 25.57 percent of Sakae’s market capitalization, the filing said.