By THE STAR
PETALING JAYA: SEG International Bhd (SEGi) plans to sell by year’s end the new SEGi College campus in Kota Damansara to AmanahRaya Real Estate Investment Trust (REIT) and lease it back for 15 years.
Chief executive officer Datuk Clement Hii said that AmanahRaya REIT had made a tentative offer of RM145mil but the two parties were still working out the value.
The move was aimed at unlocking the value of the land and to fund the construction of the new building, he said after the company’s AGM yesterday.
“Of course, this will be subject to Bursa Malaysia and shareholders’ approvals,” he said, adding that SEGi hoped to call for an EGM within the next three months.
Early this year, SEGi sold its Subang Jaya campus to AmanahRaya REIT for RM48mil. Hii said proceeds from the sale were being used to settle bank borrowings and fund future expansion in overseas markets.
“We want to be present in countries such as Indonesia, China, India, Britain, the United States and in some African nations through twinning programmes or stake acquisitions.
“However, the expansion plans will be carried out six to 12 months after the official opening of the new campus as we need to pool our resources to ensure its success,” he said.
Hii said the group expected the new campus, which will have its first intake on July 9, to boost student intake by 25% to 30% over the next two years from 14,000 now.
The group was confident that the opening of the sixth campus would attract more foreign students, who now comprise 15% to 18% of the total enrolment, he added.
For the financial year (FY) ended Dec 31, 2006, the group registered a pre-tax profit of RM2.9mil against RM1mil in FY05. Its revenue, however, fell 1% to RM74.2mil following the disposal of seven unprofitable colleges in December 2005.