(Sharecast News) - E-commerce platform and payments company MobilityOne announced on Friday that its Malaysian subsidiary, M1 Malaysia, has entered into a tenancy agreement with LMS Digital to occupy 4,500 square feet of office space at Wisma LMS in Kuala Lumpur.
The AIM-traded firm said the current office, owned by M1 Malaysia at Megan Avenue II in Kuala Lumpur, had a total floor size of 2,800 square feet, and was thus insufficient for its growing staff needs.
It said the Wisma LMS office, located in the Off Jalan Raja Muda Abdul Aziz district in Kuala Lumpur, was around 4,500 square feet, and so had the necessary staff space for the M1 Group.
Currently, the M1 Group is occupying the Wisma LMS Office rent-free, and had simultaneously been renting out the Megan Avenue II office for MYR 2.50 (44p) per square foot - the same rate payable for the Wisma LMS Office.
"Pursuant to the terms of the tenancy agreement, M1 Malaysia will pay a monthly rental fee of MYR 11,250 to LMS on the first day of each succeeding month which is payable on or before the seventh day of the month," the board said in its statement.
"M1 Malaysia will not be required to pay any rental deposit, utility deposit or any historic consideration in relation to the rent-free Period as part of the tenancy agreement."
It said the tenancy would start on 1 March, and would be for a minimum of one year and automatically renewed on an annual basis, unless either party gave three months' notice to terminate.
"The group does not anticipate any revenue or earnings contribution from the tenancy agreement to the group."
At 1057 GMT, shares in MobilityOne were up 8.95% at 10.35p.
Mobilityone (MBO)