KUALA LUMPUR: MARA Incorporated has been ordered to work out a rationalisation plan to solve its property investment issues in Australia, said chairman Tan Sri Annuar Musa (pix).
He said MARA Inc. had taken short term loans of about three and four years from two Australian banks to purchase the properties in Australia.
He said this resulted in MARA Inc. having to pay back the loan quickly and to avoid any problems, it was decided that a rationalisation plan was needed.
He said MARA Inc. put forward a proposal to sell a 12-storey office building in Melbourne, 51 Queen Street, to pay back the loans.
Musa said the building cost AUD$21 million (RM69 million) and was sold at AUD$23.4 million.
He said with the profit, MARA Inc. managed to settle the loan for one of the three buildings it still owned in Australia.
He added that at present, MARA Inc has a AUD$20 million loan with Maybank for a period of eight years for its Australian properties.