KFC Holdings (M) Bhd is waiting for a report from the Valuation and Property Services Department before starting negotiations with the Employees Provident Fund (EPF) over the disposal of Wisma KFC, its corporate headquarters building.

"The department did the evaluation but has yet to come out with the report. We will start negotiations after we receive the report," KFC managing director Datuk Johari Abd Ghani told Mail Money.

Johari said the time frame for inking an agreement would depend on various factors, such as when the report will be ready and also the length of the negotiations with EPF.

Media reports had placed the market value of the building at around RM90 million. KFC gained control of the 22 storey building, located in Jalan Sultan Ismail, Kuala Lumpur, in November last year.

The title deed for the building was previously held by Idris Hydraulic (Malaysia) Bhd, and was pledged to TA First Credit Sdn Bhd as part of security for a loan.

The title deed was retransferred to KFCH after Idris Hydraulic completed its restructuring scheme. Johari previously said that the buyer will take over the building and lease it back to KFC.

The disposal of Wisma KFC is part of the company's plans to reorganise its assets to cut borrowings of about RM300 million.

KFC, which operates about 560 outlets under the KFC, Pizza Hut and Ayamas brand names, posted a net profit of RM40.26 million from a revenue of RM1.38 billion for the financial year ended Dec 31 2003. - By RAZALMAN HAMMIM