Rekatech Capital completes RM2.16m purchase of two Penang suites
Rekatech Capital Bhd has disclosed the completion of its RM2.16 million acquisition of two suites in Penang's Mansion One development. The related-party transaction, signed in 2021 and completed in 2022, was only recently announced to Bursa Malaysia.
PETALING JAYA (Sept 23): Rekatech Capital Bhd said its RM2.16 million purchase of two Penang suites from companies owned by two of its then directors and their spouses was completed on April 12, 2022.
In a Bursa Malaysia filing on Wednesday (Sept 23), Rekatech provided the completion date and rental details for the transactions, which it disclosed as related-party transactions on Sept 18. The sale and purchase agreements were signed on Jan 19, 2021.
Its wholly owned subsidiary, Rekatech Suites Management Sdn Bhd, bought a 1,200 sq ft suite at Mansion One, Jalan Sultan Ahmad Shah, from Northern Prominence Sdn Bhd for RM1.32 million. It bought a 765 sq ft suite in the same development from YMS Corporate Services Sdn Bhd for RM841,500.
At the time of the agreements, Rekatech director Datuk Seri Liang Chee Fong and his spouse each owned 50% of Northern Prominence. Another director, Datuk Yow Mooi Sin, owned 90% of YMS Corporate Services, with his spouse holding the remaining 10%. Rekatech said both directors were deemed interested in the acquisition.
The larger suite is rented for RM3,200 a month under a tenancy ending June 14, 2027. The smaller suite is rented for RM1,850 a month in the final year of a tenancy ending Jan 31, 2027, up from RM1,700 a month in its first two years.
Rekatech said the acquisition was funded internally and resulted in no bank borrowings, liabilities, contingent liabilities or guarantees.
In its Sept 18 announcement, Rekatech said that, following a subsequent review, it determined the transactions were required to be disclosed under Rule 10.08 of Bursa Malaysia’s ACE Market Listing Requirements. The company said they had not previously been announced to Bursa Securities.
