news

MQREIT sells Quill Building 5 for RM45m

KUALA LUMPUR (Nov. 12): MRCB-Quill REIT (MQREIT) has disposed of its Quill Building 5 in Cyberjaya for RM45 million, cash.

In a bourse filing, the REIT said it had entered into a sale and purchase agreement with Deriv Services Sdn Bhd to dispose of the building, which is not tenanted at present, and that the expected net gain from the proposed disposal is RM3.73 million. 

Its original cost of investment in the 13-year-old commercial building, which has a gross floor area of 227,039 sq ft, was RM43 million. As at Dec 31, 2019, the building's audited net book value was RM40 million.

The proposed disposal, it said, is in line with the group’s objective to regularly evaluate and rejuvenate MQREIT’s property portfolio.

“The manager opines that it has optimised the potential of the property and given the favourable disposal price for the sale of this asset, it is an opportune time to dispose of this asset.

“The proceeds from the proposed disposal may be utilised, amongst others to repay existing borrowings and re-deploy the capital for asset enhancement initiatives and investments in other assets,” it added.

On Bursa Malaysia, MQREIT closed 3.5 sen or 4.4% higher at 83 sen on Thursday, valuing the group at RM889.58 million. 

Yesterday, the REIT announced a 9% increase in its net property income (NPI) for the third quarter ended Sept 30, 2020, to RM32.4 million from RM29.74 million a year earlier, as it registered higher revenue from its assets here and in Penang, while operating expenses declined. Quarterly revenue rose to RM41.71 million from RM39.46 million.

For the nine months ended Sept 30, MQREIT's NPI climbed to RM96.68 million from RM91.6 million a year earlier, as revenue grew to RM124.55 million from RM120.37 million. 

Get the latest news @ www.EdgeProp.my

Click here for more property stories.

Like our content? Check out Narratives – where we curate stories based on topics to keep you well and broadly informed about Malaysian real estate.

Looking for property? Check out Location Scan, where we summarize all available options and facts you need in a few clicks. We have updated the tool to include MRT3 stations too.

Curious how much you can borrow? Use LoanCheck to get your maximum loan eligibility from various banks, or LoanReport to get a FREE CTOS/CCRIS credit report.
SHARE
RELATED POSTS
  1. AME Elite secures shareholders’ greenlight for AME REIT Main Market listing
  2. AME to list RM557m of industrial assets under REIT
  3. Serba Dinamik unable to complete RM24m office building buy; deposit forfeited