KUALA LUMPUR: Telekom Malaysia Bhd (TM) may consider disposing its assets to unlock value and better utilise its proceeds.
Its acting chief executive officer Imri Mokhtar said the proceeds could be used for other investments that provide better returns for the company.
"It is a continuous process that will be implemented from time to time. It is not something new, it was done several years ago.
“Some parts of the existing lands are TM's properties, while some are state-owned. We will continue to evaluate the option of selling our properties," he said in an interview recently.
In February, TM said it planned to sell its buildings, Annexe 1 and Annexe 2 located in Lembah Pantai, for between RM273.4 million and RM312 million.
According to a news portal report, the sales tender for the building had been opened and potential buyers had the option of buying either the two buildings without tenants, or with different tenancy agreements.
Both buildings occupy leasehold plots and are owned by TM, with the plots still having another 53 years left to their lease.
Annexe 1 is a 20-storey building with a gross floor area (GFA) of 266,140 sq ft, a net lettable area of 188,122 sq ft and an occupancy rate of 95 per cenr.
Annexe 2 is a 33-storey building with a GFA of 412,875 sq ft, a net lettable area of 280,650 sq ft and an occupancy rate of 92 per cent.
The reserve price for Annexe 1 starts at RM108.5 million and goes up to RM125 million, while Annexe 2 starts at RM164.9 million and goes up to RM187 million, the newsreport said.
Commenting on the proposed sale of the buildings, Imri said the company was still looking at options that could create value for the company.
"So far, there has been no decision (sale) about it. We are still considering it," he said.
Meanwhile, Telekom has clarified that it had actually sold Menara TM in 2008.
Telekom said it has been occupying the building on a leasing arrangement since then.
According to Bursa Malaysia, Telekom completed its Islamic sale and leaseback transaction that involved the issuance of RM1 billion of Islamic Asset Backed Sukuk Ijarah by Menara ABS Bhd (MAB) on January 15.
The transaction involved the sale and purchase of Menara TM, Menara Celcom, TM Cyberjaya Complex and Wisma TM (Taman Desa) to MAB for RM1 billion.