Sentral REIT forks out RM450mil to acquire Menara CelcomDigi
PETALING JAYA: Sentral REIT has inked a conditional sale and purchase agreement (SPA) with its major unitholder Malaysian Resources Corp Bhd (MRCB) to acquire Menara CelcomDigi in Petaling Jaya, Selangor, for RM450 million cash.
Sentral REIT said the acquisition of the 27-storey office building from MRCB’s wholly-owned subsidiary Puncak Wangi Sdn Bhd will be satisfied with cash raised through a combination of equity and debt funding exercises.
In a filing with Bursa Malaysia, it said this will entail a proposed placement of up to 123.72 million shares, of which 34.56 million shares would be for MRCB’s undertaking to maintain their current percentage unitholding in Sentral REIT.
The property development and construction group currently holds 55.88% of Sentral REIT.
The issuance of 123.72 million shares represents approximately 11.5% of the existing total units in issue and will be placed out to institutional investors at an issue price to be determined by way of bookbuilding.
The acquisition is expected to expand Sentral REIT’s total asset size by 21% from RM2.15 billion as at Dec 31, 2022 to approximately RM2.6 billion.
The price was arrived at based on the market valuation done by CBRE WTW Valuation & Advisory Sdn Bhd, an independent registered valuer appointed by Sentral.
The proposed acquisition, which includes six levels of podium and three levels of basement, is expected to be completed by the end of 2023.
Menara CelcomDigi is located within the prime commercial hub of Petaling Jaya and has a net lettable area 450,000 sq ft.
“The property is a strategic fit to Sentral’s current portfolio of nine quality commercial properties. We are positive about the growth prospects of the trust as we increase its footprint in Klang Valley.
“We believe that PJ Sentral is an attractive and prime business area strategically located within Klang Valley,” said chairman of Sentral REIT Management Sdn Bhd Saw Choo Boon.
At market close, Sentral REIT shares closed 0.5 sen higher or 0.6% to 83.5 sen, valuing the REIT at RM889.61 million.
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