PETALING JAYA (June 29): Sunway REIT Management Sdn Bhd, the Manager of Sunway Real Estate Investment Trust (Sunway REIT) will be acquiring The Pinnacle Sunway, a Grade A office building in Sunway City, Selangor for RM450 million.
The proposed acquisition will mark Sunway REIT’s 10th property addition to its asset portfolio since its listing on the Main Market of Bursa Malaysia Securities Bhd in July 2010, and raise the REIT’s property value to RM8.5 billion.
The REIT announced today that RHB Trustees Berhad as trustee of Sunway REIT has entered into a conditional sale and purchase agreement with Sunway Integrated Properties Sdn. Bhd. and Sunway Pinnacle Sdn Bhd, both which are wholly-owned indirect subsidiaries of Sunway Bhd for the proposed acquisition.
The transaction also entails a proposed private placement to raise gross proceeds of up to RM710 million to fund the proposed acquisition and expansion of Sunway Carnival Mall as well as the proposed establishment of a Distribution Reinvestment Scheme (“DRS”) to provide unit holders with an option to elect to reinvest their cash income distribution in new units of Sunway REIT.
Phase 1 expansion of Sunway Carnival Mall (comprising 9 storeys of retail space and 7 levels of car park) in Penang, is expected to be completed in 2021.
The Pinnacle Sunway is a 24-storey Grade A office building with 3 mezzanine floors and 6 levels of basement car park that could accommodate 855 bays. Its total NLA is 576, 864 sq ft. The Green Building Index (GBI)- certified and Multimedia Super Corridor (MSC)-status building is seamlessly connected to Sunway Pyramid Mall, Sunway Resort Hotel & Spa and Menara Sunway.
The Pinnacle Sunway is presently 100% occupied and houses a variety of tenants including from the technology and telecommunications sector occupying the largest net lettable area of the building.
Dato’ Jeffrey Ng, CEO of Sunway REIT Management Sdn. Bhd said The Pinnacle Sunway will be the eighth asset that Sunway REIT owns in Sunway City and complements the diversified base of Sunway REIT’s asset portfolio.
"It is well positioned to benefit from the broader business ecosystem components of Sunway City including the retail, commercial, hospitality, healthcare, education and infrastructures connectivity across car park facilities, bridges and walkways," he said.
The proposals are subject to the approval of Sunway REIT’s unitholders.