What is the proposed monthly rental for Balai Berita and Shah Alam plant?

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The Proposed Monthly Rental for Balai Berita and the Shah Alam Plant is RM1.38 Million

The New Straits Times Press (NSTP) has proposed a monthly rental of RM1.38 million to continue occupying Balai Berita, its Kuala Lumpur headquarters, and its printing plant in Shah Alam. This proposed rental agreement is a component of a larger deal involving the sale of these two properties, along with a vacant plot of land, to PNB Development Sdn Bhd. The entire transaction is anticipated to yield RM280 million for NSTP, which is 98.17 per cent owned by Media Prima Bhd.
Rental Agreement Details and Property Valuations

Under the terms of the conditional sales and purchase agreement, NSTP intends to rent back Balai Berita and the Shah Alam plant. The proposed monthly rental is set at RM1.38 million, and this arrangement is planned to span a period of six years. For the purpose of this sale, Balai Berita has been valued at RM118,720,000, while the Shah Alam property has a valuation of RM127,900,000.
Financial Implications for Media Prima

The sale of these assets is a strategic move aimed at bolstering the financial health of the parent company, Media Prima Bhd. Media Prima recorded a significant net loss of RM669.66 million for the financial year 2017. The RM280 million generated from the property sale is intended to provide an immediate injection of cash flow.
Funding for "Project Odyssey"

The proceeds from the property divestment are earmarked to finance "Project Odyssey," Media Prima's comprehensive plan for revenue diversification. This initiative is crucial for the company as it seeks to explore new income streams and mitigate its financial challenges. The sale requires the approval of Media Prima's shareholders, which is to be sought through an extraordinary general meeting within a 90-day timeframe.

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What is the proposed monthly rental for Balai Berita and Shah Alam plant?

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