TELEKOM Malaysia Bhd (TM), which has put two properties on sale via a tender process, said the proposed disposal is consistent with its strategy to create long-term value for its shareholders.

TM said in a statement today that it has and will continue to explore options to unlock value for the group, which includes the sale of non-core property assets, such as land and buildings. 

“The sale of these assets is consistent with our strategy to create long-term value for our shareholders by strengthening the balance sheet and further focusing our portfolio on our core business that will drive growth.

“We are unable to comment further on this as the tender process is still ongoing.”

It did not respond to The Malaysian Insight’s query on what the proceeds from the disposal would be used for.

Purchase of tender documents for the disposal of TM’s Annexe 1 and Annexe 2 office towers were opened on February 14.

According to the tender notice uploaded on its website, the deadline for the submission of completed tender  documents is March 29. 

The Edge, in its report quoting a TM official yesterday, said that the reserve price range for the properties was between RM273.4 million and RM312 million.

The official told theedgemarkets.com that potential buyers had the option of buying the buildings without tenants or with different tenancy agreements.

“Bids for the buildings have to be submitted by March 29 this year. Both towers are on leasehold land with the lease still having 53 years left to it,” the official reportedly said at the tender briefing yesterday.

Annexe 1 is a 20-storey office tower with a gross floor area of 266,140 sq ft. The building has a gross lettable area of 188,122 sq ft while Annexe 2 is a 33-storey office  building with a gross floor area of 412,875 sq ft and a gross lettable area of 280,650 sq ft. – February 28, 2019.