TM is selling two towers, so what’s the big deal?

Telekom Malaysia has published a tender notice for TM Annexe 1 and Annex 2 which are located next to Menara TM. — SoyaCincau pic
Telekom Malaysia has published a tender notice for TM Annexe 1 and Annex 2 which are located next to Menara TM. — SoyaCincau pic

KUALA LUMPUR, Feb 14 — Telekom Malaysia has published a tender notice for TM Annexe 1 and Annex 2 which are located next to Menara TM. With its central location and a combined gross floor area of 679,015 square feet, these buildings are considered high-value assets. So, why is TM selling these properties? While it is easy to assume that the company is in trouble, selling off assets could be a good thing.

It is actually normal for corporations to sell their buildings to unlock the value of their investment. The sale will help to generate extra cash and this can be invested in other areas. It is possible that the extra gain is utilised to improve the network which we hope will solve the Streamyx problem.

In late 2018, Media Prima had sold its Balai Berita building at Bangsar and a printing plant at Shah Alam to PNB Development Berhad for RM280 million. This has helped the group to gained RM127.7 million from the sale. According to Media Prima group’s managing director, Datuk Kamal Khalid, the sale will generate a total savings of RM10 million per annum and it will allow them to preserve its cash reserves for its business transformation efforts.

If you’re interested in TM’s property, you can attend the tender briefing session that’s happening on Wednesday, February 27, 2019 at TM Convention Centre. You’ll need to buy the tender document which costs RM500 per copy. — SoyaCincau

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