INTER-ROLLER Engineering has sold a Suntec property in a disposal that would yield a pre-tax gain of about $10.85 million. The purchaser yesterday exercised an option, which was issued by wholly owned subsidiary Inter-Roller Investments, to buy the property at Suntec Tower 1 for $23.25 million. Completion is expected to be within 10 weeks.

Inter-Roller had acquired the property in January 2006 for $12.6 million, inclusive of ancillary costs. The net carrying value of the property after depreciation was $12.4 million as at Dec 31, 2006. The open-market value of the property as at Sept 28, 2006 was $17.37 million. The sale price represented a gain before tax of about $10.85 million over the net book value of the property, the company said.

'The sale presents a timely opportunity for the group to unlock capital value and realise a gain of $10.85 million,' it said. 'In the immediate term, as the group continually assesses other business opportunities and investments, the proceeds will be utilised to repay the bank loan taken to finance this property and the balance for general working capital purpose.'

Inter-Roller recently reported a 52 per cent jump in full-year 2006 net profit to $25.7 million.

《The Business Times》