An announcement filing from SHL Consolidated Bhd dated Thursday 11 June 2009 on Bursa Malaysia has proposed to accept an offer by UTAR Education Foundation to purchase a 10-storey education building in Mukim Cheras as well as an adjoining piece of land for a total cash consideration of RM34.535 million from SHL Realty Sdn Bhd, a wholly-owned subsidiary of SHL Consolidated Bhd.

The acceptance of the offer is subject to the approval of the Minister of Domestic Trade and Consumer Affairs Malaysia and thereafter the approval of the Foreign Investment Committee.

Currently, the ten-storey building which is located on 81,938 sq ft of freehold land is rented to University Tunku Abdul Rahman (UTAR). Monthly rental income for the premises is RM150,000 and the original cost of the building is RM24,905,482.

The adjoining piece of commercial land with a total area of 82,465 sq ft is currently used as parking facilities for University Tunku Abdul Rahman. The monthly rental income is RM4,000 and its original cost is RM1,088,275.

In the proposed sale to UTAR Education Foundation, the 10-storey building is to be sold at RM30 million while its adjoining land is to be sold at RM4.535 million. The result of the sale means that UTAR will own the building and the said land while the SHL Group can reduce its bank borrowings and also to reinvest in the near future.