Sentral REIT acquires Menara CelcomDigi for RM450m; proposes share placement

• Sentral REIT said the acquisition of the 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.

KUALA LUMPUR (July 25): Sentral REIT has signed a conditional sale and purchase agreement (SPA) with a unit of its major unitholder Malaysian Resources Corp Bhd (MRCB) to acquire the 27-storey office building known as Menara CelcomDigi in Petaling Jaya, Selangor for RM450 million.

In a filing to Bursa Malaysia on Tuesday (July 25), Sentral REIT said the acquisition of the 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.

The equity funding exercise will entail a proposed placement of up to 123.72 million shares, out of which 34.56 million shares would be for MRCB’s undertaking to maintain their current percentage unitholding in Sentral. MRCB now holds 55.88% of Sentral.

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.

Meanwhile, it said the acquisition, which includes six levels of podium and three levels of basement parking, is expected to expand Sentral’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 (formerly known as CH Williams Talhar & Wong Sdn Bhd), an independent registered valuer appointed by Sentral.

The proposed acquisition is expected to be completed by the end of 2023.

“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 Tan Sri Saw Choo Boon.

Menara CelcomDigi is strategically located within the prime commercial hub of PJ and has a net lettable area 450,000 sq ft.

Sentral REIT shares closed half sen higher or 0.6% to 83.5, valuing the REIT at RM889.61 million.